You want your money to grow as fast as it can, but you also want protection against the market. In short, you want the greatest return for the least risk. So do we.
With classic investing, you would normally buy a number of securities (Mutual Funds, Stocks, ETF’s, etc.) in order to create a diversified portfolio. You would then hold these securities regardless of what happens in the financial markets.
While this concept may sound like a sensible approach, in markets like we have had in 2015, 2008 or 2000, it didn’t serve investors well.
A good investment approach needs to understand how to assess current market direction and predict future market direction with some degree of certainty.
Most “professional” fund managers assert that you can’t time the market. They’re generally right – nobody knows what the market is going to do. But it IS possible to assess probability of upward or downward movement in the next short period of time based on Supply and Demand as evidenced in price behavior.
Here at Intelligent Fund Management, LLC, we’ve built a fund management system that’s easy to understand and goes well beyond what the classic “Advisors” can offer in terms of performance. It’s called OmniFunds.
OmniFunds is a system that can evaluate the current market and the world of Exchange Traded Funds (ETF’s) to determine which ones have the highest probability of appreciation in the near future. We apply our proprietary technology in order to determine what type of market we are in currently, and which ETF’s are poised to outperform in this type of market. Once we know which ETF’s we should be holding in the current market, we apply our Artificial Intelligence technology in order to determine the allocation for each position. This approach creates an adaptive system that looks to provide you with consistent gains while also protecting you against troubled markets.
OmniFunds has the benefit of using Artificial Intelligence (A.I.) in order to determine the probability of movement. We train various A.I. components over decades of market data. Our A.I. learns from the data that is fed to it from the past, but it also continues to learn as new data is introduced in the market.
This means that when we analyze the broad market and select which funds to use, we are taking into account not only similar historical markets, but also factors that exist in the current market. This advantage enables us to periodically switch into the ETF’s with the greatest potential to perform.
When you create an OmniFund, you get a customized investment management solution. While there are other investment services that simply serve up a “one size fits all” answer, OmniFunds allows you to choose from various types of funds as well as allowing you to easily adjust the funds risk factor in order to meet your investment needs.
Every OmniFund consists of two different portfolios – one is aggressive and one is conservative. We “blend” these two portfolios together to create an OmniFund. You have the ability to change to allocation to each portfolio based on your risk tolerance. So if you choose to increase your risk tolerance, more of your account will be allocated to the aggressive portfolio. Conversely, if you decrease your risk tolerance, more of your account will be allocated to the conservative portfolio.
By including multiple OmniFunds to choose from and allowing you to adjust the allocation to the blended portfolios, you now have the ability to easily define a customized investment solution.
The question that every investor should have is “Does OmniFunds provide a better investment solution?” Let’s look at a comparison.
The chart below shows one of our OmniFunds compared to a typical Robo Advisor portfolio and the US stock market. We charted the simulated performance for each starting with $100,000 in 2005 to the end of 2017.
By switching and allocating ETF’s based on the current market, the OmniFund was able to minimize losses, particularly in 2008, while also outperforming the market in bullish periods. These two advantages have a significant impact on long term growth.