Innovation Never Stops...
Diversification: Antiquated and Incomplete
• Modern Portfolio Theory was incepted in 1950 by Markowitz.
• The foundation of this risk assessment theory is that it is too difficult to know which parts of the market will outperform. (As seen by the graph on the right.)
• Very little innovation has been implemented in the past 50 years from this founding strategy.
Wide diversification is only necessary when investors do not know what they are doing. ̵1; Warren Buffett
Assessing Risk Like Never Before
• Due to the chaotic and volatile nature of markets presently, a more thorough evaluation is needed to truly outperform.
• By quantitatively assessing financial metrics (both macro and micro), non-financial metrics (events, news, mass-opinion, etc.) independently and the PERCEPTION of how the data is being acted upon in the markets is how ArmourWealth is better able to manage a position’s return compared to your typical diversified allocation.
• Armour’s proprietary analysis allows us to quickly move out of positions with negative perception, and in a reciprocal fashion, efficiently re-enter those positions when in favor.
Perception is Reality
• Almost all investment strategies on the market only assess financial data to make investment decisions.
• Market moves are based on the perception of the macro and micro conditions in the marketplace, not just the data itself.
• ArmourWealth takes into account these key pieces to make a more thorough examination of investment risks and returns.
The Armour Process
• ArmourWealth has implemented objective, proprietary geometric and algebraic algorithms to make better informed investment decisions by analyzing risk and return of both micro and macro-economic data, and assessing how that information is being perceived or acted upon by the marketplace.
• Due to the complexity of what could affect investment pricing, many things affect returns other than just financial data. (i.e. perception of the effects of government
debt, fiscal cliff, major weather events, breaking news, etc.)
