Did you know that there has been a seismic shift in asset allocation that can’t be ignored?
The bond market has been in a secular Bull market since 1982, interest rates have been coming down and bond values have been rising for 40 years and this has made bonds a safe and secure part of every portfolio for decades. Keeping portfolios safe has been easy, just add more bonds. Most people don’t know that the interest rate cycle is a multi-decade cycle. The most popular asset allocation model used by financial advisors and retirement plan participants is the 60/40 allocation.
What should investors do if the so call safe part of your portfolio, is no longer safe?
You’re probably wondering what the bond market history and multi decade cycles have to do with the Alpha Dog ETF.
Financial Advisors and individual investors are now dealing with this generational paradigm shift. How do you reduce volatility if the safe part of your portfolio is no longer safe?
My name is Eduard Hamamjian and I’m the Chief Investment officer of the Alpha Dog ETF, and the principal of GeaSphere LLC, a SEC registered investment advisors’ firm. I have been managing model portfolios in SMA accounts for the past 30 years.
We launched the Alpha Dog ETF to solve the new paradigm shift, of how to reduce risk in client portfolios without using bonds.
The Alpha Dog seeks to buy the leading stocks of leading sectors with a new economy bias for core holdings and a 36-month price target. We will hold any security for as long as they are leaders. The ETF typically holds 40 stocks.
The Alpha Dog has an options overlay strategy in which we sell covered calls against our positions every month. This means we take in a premium whether the stocks in the fund rise fall or stay the same.
When stocks are rising or going sideways our premiums will enhance total returns, and when stocks are falling, we use the premiums to hedge our portfolios to reduce downside volatility and provide a diversifier to reduce risk.
We believe the Alpha Dog can be used as a standalone for the growth part of every portfolio or part of a larger portfolio allocation. We hope you will give us a try.
Thank you for listening.