Follow the Money
FSA, Thirty years smart, 1982 – 2012
Follow the Money - (Law of Supply and Demand–When demand exceeds supply, prices rise)
Just as an experienced sailor adjusts the sails to catch the wind when it switches direction, we adjust our investment strategies to respond to shifts and changes in the market.
FSA does not believe in holding asset classes through all market cycles. Asset classes and sectors go through extended periods being in-favor and out-of-favor. Our investment process seeks to own those assets when they are in-favor, while avoiding them when they are out-of-favor.
Identifying when assets are in-favor is a function of "following the money" into investment areas dominated by buyers during good market cycles. It is as simple as supply and demand. When demand dominates, prices rise. For example, technology stocks were dominated by money flows during the late 1990's while early this past decade, money flows dominated the real estate, emerging markets and commodities markets. After the financial crisis of 2008, money flowed predominantly into all types of bonds. When investors shift and move money "out," the FSA Safety Net® is in place - our exit strategy.
U.S. stock funds may be the right garment for a particular season, but may leave one exposed when the financial climate changes. If financial storms exist in one part of the world, our objective is to reposition your assets to take advantage of investments elsewhere in the world.
Please note: Past performance does not guarantee future results. There are always risks involved with investing including the loss of principal.