What Makes Full Cycle Investing Unique?

Many investors are familiar with traditional asset allocation which at its core is designed to balance risk and reward. Oftentimes this means a concentration in equities. However, this method is susceptible to large drawdowns.

Rather than typical asset allocation models, Full Cycle Investing takes a different approach by closely monitoring global and domestic markets and economic environments and then strategically allocate your portfolio to the best sectors and asset classes depending on whether we are in a growth or inflationary period.

Why You Should Use our Full Cycle Investment Strategy

“Most investors are wired with every bone in their body to do the wrong thing” ~ Howard Marks, Oaktree Capital

Being active, patient and disciplined could add most value from a full-cycle perspective. We remain alert to profiting from the opportunities that may present themselves as these trends begin to tire.

We don’t focus on short-term performance, we are seeking long-term success for our clients. We follow all market conditions closely, so you don’t have to.

Short Term VS Long Term Investing

In the short-run, market returns tend to be influenced most by a combination of investor sentiment, risk preferences and price momentum, all of which are interrelated. Over the course of a full market cycle however, valuations are ultimately what matter.

In the short-run, investors are often penalised for following the familiar approach of buying low and selling high. Yet a full market cycle tends to be enormously forgiving to investors who decide to reduce their risk when markets are at or close to their high point. This is true even if investors do this a little bit too early, and miss out on the final stages of upside.

Powered by Intrepid Wealth

Intrepid Wealth has over 30 years of experience in the Financial Planning industry. Our CEO, PJ Patterson has been a broker in Australia since 2002, founding Intrepid Wealth Mortgages, and has been a Financial Planner since 2008.

Intrepid Wealth will help you to solve all your financial problems. We will educate and guide you to become better equipped at dealing with inevitable market changes and keep your business grounded through the peaks and troughs.

Podcast Episode: Full Cycle Investing

In this Money Matters Podcast episode, PJ Patterson looks at the challenge and importance of emphasising capital preservation over capital growth as market risks build. PJ shares his thoughts on why it’s important for investors to draw a few distinctions between the short-run and the full market cycle – which is commonly measured as the market peak to peak, or trough to trough.