The cornerstone of investing is diversification. To many, diversification means what percentage of stocks vs. bonds or how many investments you may be holding. While this may be a starting point, bringing an alternative investment strategy into your portfolio will create another level of diversification. Blue Point has developed such a strategy and believes that it can be the core investment of your portfolio. With the combination of both a buy and hold strategy and a tactical solution, Blue Point has the ability to move both with and against the currents. Our portfolios strive to give excellent returns in both up and sideways markets, in addition to reducing amounts of downside depending on the portfolio you choose. While no single investing approach can be the answer, we believe this strategy offers a higher probability of achieving your investment goals.
Blue Point attempts to capture higher yields from certain sectors of fixed income investments while employing a stop loss strategy on those higher yielding fixed income funds. The Model Portfolio you choose determines the level of downside protection during declining fixed income markets. Blue Point believes that there is a good risk return for owning certain types of fixed income funds compared to equities. However, owning equities is a good long term strategy and Blue Point does not employ a stop loss strategy with the equity allocations of its portfolios. Instead, Blue Point maintains a buy and hold strategy with its equity allocation except in very extreme situations. Since every market fluctuation contains the potential for gain and loss, the most successful strategy is the one that protects your principal when the markets go the wrong way.
Over the long term, the sequence of returns in your portfolio is of the utmost importance. When you invest money, some risk will always be present. The idea is to manage the risk in such a way as to leave you less vulnerable to market volatility.