At BCM, we provide intelligent, risk-managed investment solutions that seek to preserve and grow your assets despite the market. We design portfolios with a sophisticated mix of investments that are diversified - both across and within - asset classes. This design is intended to insulate you against short-term swings resulting from a concentration in any one type of investment and helps grow your wealth over the long-term.
We believe successful investing can be achieved by applying active risk management within portfolios that are economically-balanced across different non-correlated asset classes.
Based on more than 30 years of research, development, and application, the BCM Market Risk Model is our primary risk-assessment tool. The Model utilizes economic, financial, and monetary data to assess the risk climate present across financial markets. This assessment results in either a Favorable (green) or Unfavorable (red) risk outlook, which in turn is used to guide the asset allocation decisions of our portfolios.
When the Model registers a favorable risk outlook (green), our portfolios will be more heavily allocated towards higher-risk asset classes such as stocks. When the Model registers an unfavorable outlook (red), we reduce our allocations towards higher-risk asset classes and place a heavier weighting towards lower-risk asset classes such as short- term bonds or cash equivalents.
By adjusting our exposure to market risk in accordance with the outlook of the Model, we attempt to realize competitive market returns over a full economic cycle, with less volatility and a mitigation of potential account declines and draw-downs during difficult market periods.
We implement our philosophy by first determining an optimal security mix, meaning components that have different return and risk characteristics (i.e., stocks, bonds, precious metals, cash, etc.). Indexed funds and ETFs are our preferred investment securities. Our BCM Market Risk Model guides both the equity and bond exposure of our balanced portfolios.
When it comes to investing, the long-term is the only time frame that truly matters. However, because the long-term is not where life is lived, we have created two unique, low-cost, risk managed strategies that, among other things, seek to ensure that investors can handle periodic bouts of volatility without abandoning their investment plan.