Our Approach

The investment philosophy behind the Republic Wealth SmartZone Investing System includes the following ideas:

  • Traditional asset allocation is largely ineffective for the average investor.

Most investors lack the time horizon and patience to take advantage of the full market cycle necessary to yield above-average returns.

  • Positive returns are possible even in difficult periods.

Despite the negative cumulative 10-year return for the S&P 500 from 2000-2009, positive returns did exist during this time period—but not if your investments were only indexed against the market.

  • Risk management is paramount in market downturns.

By preserving capital during market downturns, investors need much smaller returns to regain their high watermarks.

The hypothetical chart below shows the percentage gain required to recover from a loss. If your investment loses 10%, you must make 11.1% to regain your previous high watermark. If your investment loses 20%, you must make 25% to regain your previous high watermark. And, if your investmet loses 50%, you must make 100% to regain your previous high water mark. 

The Republic Wealth SmartZone Investing System

These ideas are incorporated into our SmartZone Investing System which seeks to maximize returns when the market is performing well and to minimize risk by preserving and protecting capital in market downturns.

The Republic Wealth SmartZone Investing System seeks to actively balance these two constantly competing investment objectives by:

  • Attempting to continually identify and exploit market opportunities and areas of strength
  • Attempting to vigilantly monitor and evaluate market risks
  • Attempting to dynamically adapt and adjust to changing market conditions

We employ an active management approach to investing called trend following. This type of technical analysis focuses on price movements instead of predictions or forecasts. Instead of trying to anticipate what will happen, our investment strategies react to the market’s price movements whenever they occur. This eliminates emotional decision-making that can be detrimental to an investment portfolio.

Most importantly, this approach seeks to allow us to shift to the market’s strength to maximize return by riding up the market and minimize risk by shifting to cash to preserve capital during a down market.

We call our approach the “shift to the SmartZone.”

To learn more about our firm, click here. Or, to learn about how we implement our approach, click here.

Please review Important Disclosure Information set forth on the Disclosure section of this website.



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