Portfolio Shield – Update

Several people have reached out to me expressing concerns about the returns over the past couple of weeks as we have seen both stocks and bonds decline in value. For strategies such as Portfolio Shield™ which invests in both stocks and bonds, this hurts returns in the short run.

I think it’s important to understand why I invented Portfolio Shield™ and what it is designed to do. Hopefully, by understanding this, your expectations will be more in line with mine as the inventor and manager.

I invented Portfolio Shield™ as a better alternative to the standard asset allocation models, risk-parity models, and volatility-controlled models that are popular with investors and advisors. From both a return and risk-adjusted return perspective, Portfolio Shield™ is far superior to all those models.

Atlas Financial Advisors, Inc., is filed as a long-term investment management firm. As a long-term investment manager, I am focused on Portfolio Shield’s three, five, and ten-plus year annualized returns. I am not concerned about its week-to-week, month-to-month, or even quarter-to-quarter returns.

I expect that if my clients commit to Portfolio Shield™ for three or more years, they will be happy with their risk-adjusted returns. When you look at the Portfolio Shield™ family’s annualized risk-adjusted returns over three or more years, they are exceptional. The returns are even more impressive compared to their peers.

For those who have recently invested in the higher risk models near the recent peak, this is especially difficult as both stocks and bonds have been down. The question you must ask as an investor is why you choose to invest with me in the Portfolio Shield™ family.

If you are a long-term investor with a minimum of a three-plus-year time horizon, then the best move is to let the strategy do what I designed it to do. Over multi-year periods, the highest risk models have provided impressive risk-adjusted returns even through down markets.

If you are a short-term investor, then perhaps you may wish to reconsider your decision to invest with me as Portfolio Shield™ was never designed to be a short-term investment strategy.

I appreciate you taking the time to read this short note.

I just wanted to address the concerns several of you had and wanted to make sure we are all aligned with our goals and expectations for the Portfolio Shield™ family.

Steven Van Metre, CFP®