Caprock Analytics Portal

How did your portfolio fare during the recent 400 point plunge in the Dow? If you were uncomfortable with this loss, it may be time to reposition your portfolio to better withstand market volatility.

The recent market plunge seemed to come out of nowhere: was it triggered by a sell-off overseas, mortgage defaults, impending recession, or something else? Whatever the reason, the speed at which the market declined caught many by surprise. The 416 point decline on February 27th was the 7th largest point drop ever, but was only a 3.3% decline, not even making the top 20 percent market declines.

Money managers caution that some market sectors are precariously perched, and could be in for further declines. Sectors of concern include large-cap financials, mining and commodity stocks, and emerging market equities. Many of these groups of companies could be hard hit if capital markets tighten or economic conditions worsen.

In this environment, it pays to be fully diversified, and to have a portfolio that matches your tolerance for risk. If recent market drops left you uncomfortable, you should consider repositioning to a more conservative portfolio, with more limited downside volatility. Caprock Analytics makes these choices easier, providing a range of optimized, fully diversified portfolios. The Caprock portfolios include conservative, moderate, and aggressive mixes, along with optimized versions of standard portfolios.  These portfolios have proven to minimize capital drawdowns while delivering market-beating returns.

Consider these portfolios if you are searching for controlled volatility with market beating returns. These portfolios, available by subscription only, can put you back in control of your investments, by matching you with a portfolio that achieves your investment objectives.

In a recent article at Yahoo Finance, the questions are asked regarding how to put the recent market downdraft in a historical perspective. According to the statistics, the recent market volatility was more of a return to normal than anything out of the ordinary. In fact, we have been enjoying a long period of low volatility and good returns which, if anything, is what was out of the ordinary.

Reasonable forecasts of market volatility based on similar periods in market history suggest that we could experience several more large downdrafts in the coming year or so. Given this outlook, it is time to take stock of where your portfolio stands, and how it is positioned to withstand market shocks. Was the recent sell-off uncomfortable enough to you where you are considering portfolio changes? If so, now is the time to do so.

During the recent market drops, Caprock Analytics portfolios outperformed the market, reducing your exposure to loss. Caprock portofolios have also posted market beating returns over the past 1 and 3 years. The Caprock Conservative portfolio, available via subscription, could be just the ticket for you to get more comfortable with your investments, while still postured for market-beating returns.

Caprock portfolios reduce risk by combining a diversified, uncorrelated set of assets using our proprietary portfolio optimization tools.  Our portfolio optimizers continually analyze the latest market data, while reviewing hundreds of possible investment securities, zeroing in on a well-diversified, managed risk, portfolio that can still beat the market on the upside.  Just the thing to have on your side when the market hits the next downdraft.