We regularly monitor accounts to assure a proper balance of asset classes to meet your objectives. Whether an asset class is over-weight or under-weight, we rebalance to keep on track with your overall plan.
During performance reviews, we look at the industry benchmarks to reflect investment parameters for portfolio performance. Factors influencing performance are regularly discussed in our Quarterly Reports and annual meetings.
In addition to this regular commitment and review of your accounts, we are prepared to respond with any significant shifts in the market that may require a rebalance of your account.
Because these significant changes cannot be predicted, we make sure your risk comfort is calculated into your portfolio as part of a precaution, and we also offer open communication for unforeseeable events to assure that your accounts appropriately represent your objectives.
While our core investment strategy is based around long term investing, we do review and rebalance accounts regularly throughout the year with the cycles of the market and your specific goals. The intent: to reduce risk and add to returns with slight over or under weights in the different market sectors. Again, we first invest with Asset Allocation at the core but if we get a technical sell signal and are overweight stocks we will take some profits. If we get a buy signal and have money to put back to work we will add to stocks.
Since we began tracking these over/under weights in 2003 we have now had 24 cycles of which 19 of these added “positive return” benefit, 4 did not, and 1 was less than 1% change so it falls in the “no-effect” category.
Date cycle began |
Level of Dow |
Date cycle ended |
Level of Dow |
Gain / Loss during cycle |
Jan 17, 2003 – Underweight |
8,586.74 |
Apr 4, 2003 |
8,277.15 |
309.59 3.61% gain |
Apr 4, 2003 – Overweight |
8,277.15 |
Oct 31, 2003 |
9,801.12 |
1,523.97 18.41% gain |
Oct 31, 2003 – Underweight |
9,801.12 |
Dec 12, 2003 |
10,042.16 |
(241.04) 2.46% loss |
Dec 12, 2003 – Overweight |
10,042.16 |
Mar 5, 2004 |
10,595.55 |
553.39 5.51% gain |
Mar 5, 2004 – Underweight |
10,595.55 |
Apr 2, 2004 |
10,470.59 |
124.96 1.18% gain |
April 2, 2004 – Overweight |
10,470.59 |
Jul 2, 2004 |
10,282.00 |
(188.59) 1.80% loss |
July 2, 2004 – Underweight |
10,282.00 |
Aug 20, 2004 |
10,110.14 |
172.69 1.68% gain |
Aug 20, 2004 – Overweight |
10,110.14 |
Mar 4, 2005 |
10,940.55 |
830.41 8.21% gain |
Mar 4, 2005 – Underweight |
10,940.55 |
Apr 29, 2005 |
10,192.51 |
748.04 6.84% gain |
Apr 29, 2005 – Overweight |
10,192.51 |
Jul 22, 2005 |
10,651.18 |
458.67 4.50% gain |
Jul 22, 2005 - Underweight |
10,651.18 |
Sep 9, 2005 |
10,678.56 |
(27.38) 0.25% loss |
Sep 9, 2005 – Overweight |
10,678.56 |
Nov 25, 2005 |
10,931.62 |
253.06 2.37% gain |
Nov 25, 2005 – Underweight |
10,931.62 |
Feb 17, 2006 |
11,115.32 |
(183.70) 1.65% loss |
Feb 17, 2006 – Overweight |
11,115.32 |
May 5, 2006 |
11,577.74 |
462.42 4.16% gain |
May 5, 2006 – Underweight |
11,577.74 |
June 23, 2006 |
10,989.09 |
588.65 5.08% gain |
June 23, 2006 – Overweight |
10,989.09 |
August 18, 2006 |
11,381.47 |
392.38 3.57% gain |
August 18, 2006 – Underweight |
11,381.47 |
Dec 8, 2006 |
12,307.49 |
(926.02) 8.14% loss |
Dec 8, 2006 – Overweight |
12,307.49 |
Feb 2, 2007 |
12,653.49 |
346.00 2.81% gain |
Feb 2, 2007 – Underweight |
12,653.49 |
March 30, 2007 |
12,354.35 |
299.14 2.36% gain |
March 30, 2007 - Overweight |
12,354.35 |
July 2, 2007 |
13,535.43 |
1,181.08 9.56% gain |
July 2, 2007 – Underweight |
13,535.43 |
August 27, 2007 |
13,322.13 |
213.30 1.58% gain |
| August 27, 2007 - Overweight |
13,322.13 |
October 23, 2007 |
13,676.23 |
354.10 2.66% gain |
| October 23, 2007 - Underweight |
13,676.23 |
Dec 17, 2007 |
13,167.20 |
509.03 3.72% gain |
| December 17, 2007 - Overweight |
13,167.20 |
Est. March 08? |
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As far as disclaimers go from the legal department: The gain / losses listed above are solely based on the change in the Dow Jones Industrial Average during the stated time period. These performance figures are not a reflection of the gain or loss in any individual account. The Dow is an unmanaged index and cannot be invested in directly. Please consult your LPL statement for your personal performance results.
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