Tailored Investment Strategies

At Client First Capital, we understand that every financial journey is unique. Our tailored investment strategies integrate seamlessly with your broader financial and estate plans.

Our 5-Step Investment Process

1. Analyze the Economic Climate – Assess whether the economy is expanding or contracting relative to inflation by measuring the rate of change in key factors like CPI and GDP.

2. Match Economic Conditions to Asset Classes – Different investments thrive in different environments. Backtesting helps confirm whether assets expected to perform well in the current economic climate are actually doing so. Keep in mind: the economy and the market are not the same.

3. Understand Market Structure – Institutional investors (such as hedge funds and banks) impact the market structure through capital flows. Options trading alone often surpasses stock trading volume. Tracking this data provides insight into the market’s underlying structure.

4. Leverage Volume and Price Movements – Analyzing price action and trading volume helps gauge liquidity levels within an asset class, guiding informed trade execution.

5. Repeat the Process – Markets and economies evolve over time rather than daily. Continuously repeating the process ensures optimal portfolio allocation for prevailing conditions.

How Our Approach Differs from Traditional Asset Allocation i.e. Modern Portfolio Theory

Modern Portfolio Theory (MPT) has long been a foundation for investment strategies used by large institutions, but it comes with two main flaws that our approach addresses:

1. True Diversification Beyond Stocks and Bonds
   MPT assumes the market consists solely of stocks and bonds. We recognize four major asset classes (Stocks, Bonds, Alternatives and Currencies), broadening the investment universe to optimize portfolio performance. During periods of heightened volatility, Stock and Bonds assets often move in the same direction. With a broader view of asset classes, we are better positioned to mitigate this risk.

2. Proactive Strategy
   MPT overlooks the importance of the current economic environment. MPT also assumes probable outcomes are evenly distributed, which does not align with actual market behavior.  Our approach adapts to real-time changes in growth, inflation, and market conditions to make informed investment decisions and respond to potential market downturns.

Ready to Start Your Journey?
Discover how our tailored strategies bring simplicity, clarity, and confidence to your financial future. Contact us today to schedule a conversation.