Posts Tagged investment approach

Winning By Not Losing–A Disciplined Approach

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It’s true that no one can predict the stock market, but it is possible to know when conditions are favorable for making money—and
when they’re not.

Stadion’s three-part management approach allows us to do just that.

First, we use our quantitative investment model to assess the market’s risk level at any given time. Our model is built on several proprietary indicators that use internal market data and price trends to determine when we have an edge or when we need to be defensive. This weight-ofthe-evidence approach determines how much exposure Stadion investors will have to equities at any given time.

The second step in our tactical asset allocation process is making sure our portfolios are overweighted in the asset classes that are doing well and underweighted in asset classes that are out of favor.

The final step in the process is our objective, well-defined sell strategy. We do not hesitate to shift our portfolios to more defensive positions when market
internals weaken and intermediate price trends turn negative. Our safety measures may occasionally cause us to miss some market gains, but they are critical in helping us avoid devastating losses.