Investment Philosophy

At Weatherstone Capital Management we believe that the stock market is one of the best ways for investors to build wealth over time. However, periodic and painful market declines that can wipe out months and even years of stock market gains and hard-earned savings cause many investors to avoid these areas and to allocate the bulk of their “serious” investment dollars to safer, but much lower yielding investments. By following indicators and models that attempt to identify the potential risk and reward in various types of investments and then implement an investment approach that shifts the asset allocation as risk levels change, we aim to provide a more consistent rate of return and lower volatility that a typical buy-and-hold investment philosophy. This approach is designed to allow risk-averse investors a way of allocating a higher percentage of their investment assets to the stock market and other financial markets that experience fluctuation.

bnr_philosophyRisk measurement tools can be both helpful and effective in determining where and when to invest money. However, it is not unusual to find that a particular indicator will work at some times, and not others. For this reason most of the investment strategies that we utilize are built upon the principal of incorporating multiple risk measurement indicators together to build a single model.

We may also incorporate individual indicators or models that direct a portion of the overall allocation. These are designed to reduce the possibility that an entire strategy gets “out of sync” with the market. In addition to providing multiple investment strategies we have established relationships with other money managers who have developed risk-managed investment programs that we feel are complimentary to our own investment programs and have made them available to clients in addition to our own strategies. We feel that providing a robust array of risk-managed investment programs will allow advisors to build investment portfolios that fit the needs of many of their clients.