adaptive investment allocation model: Sector Rotation
The Adaptive Investment Allocation Model is our flagship model. At its core, AIA is Sector Rotation.
By constantly ranking the stock market sectors by their relative strength, AIA delivers the highest-performing sectors to you in the newsletter each month.
Our Risk Management Indicators are also applied to the AIA sector suggestions to help subscribers understand when to be invested and when to back away due to increased market volatility and uncertainty. See Risk Management Indicators
If you believe handling your investment and retirement accounts yourself is too difficult and complex and that you need a Fee-Based Advisor, think again! Consider Adaptive Investment Allocations (AIA). AIA offers risk-based asset allocation recommendations based on the current market and economic conditions.
Its primary goal is to minimize stock market risk and volatility while maintaining long-term growth. Research shows that individual investors often underperform due to emotional decision-making rather than factual analysis. Think 2 Retire believes that a lack of consistent methodology and discipline is the root cause of underperformance. AIA provides the rules-based methodology that individual investors need for success.
By applying the AIA recommendations, subscribers can stay informed and improve their financial results while saving thousands of dollars in management fees annually.
As with all of our models, implementing these changes only takes about 10 minutes per month, freeing you from needing a fee-based financial advisor.
AIA stands apart from generic or passive asset allocation models commonly used by advisors as it is not a set-and-forget strategy. Stay active and engaged with AIA for better financial outcomes.
Investment markets are always changing, driven by shifts in economic conditions.
Certain industries, sectors, or asset classes become more favorable while others lose their appeal. AIA aims to respond to these changes by adjusting investment allocations accordingly.
By actively interpreting and acting on market dynamics, AIA keeps subscribers constantly updated and allocated to the areas that are favored by the stock market.
AIA aims to keep you invested in strong sectors and asset classes while avoiding weaker areas to enhance long-term results.
Subscribers receive a list of current higher-performing sectors and asset classes along with corresponding investment names and symbols. You simply apply these suggestions to your investment or retirement accounts.
If your IRA or investment account is held at a brokerage firm, AIA will deliver the specific ETFs (Exchange Traded Funds) that best correspond to the asset classes and sectors exhibiting the highest relative strength. ETFs are used because they have low management fees and can pinpoint strong sectors and asset classes.
If you'd like to use AIA with your 401k or mutual fund family, AIA will deliver the specific mutual funds that best represent the asset classes and sectors performing best in the current market environment. AIA will only use the funds available within your particular 401(k) and mutual fund family.
Think 2 Retire's newsletter delivers allocation updates on the first business day of each month. Stay informed and make strategic investment decisions with ease.
Think 2 Retire does not have access to your account, nor do we enter transactions on your behalf. By entering your own transactions, you’ll be more in touch with your money and save substantially on management fees.
Major Stock Market Sectors & Asset Classes Used by Adaptive Investment Allocation:
- Technology
- Industrials
- Consumer Cyclicals
- Consumer Non-Cyclicals
- Energy
- Financials
- Healthcare
- Telecom
- Real Estate
- Utilities
- Large-Cap Growth & Value
- Mid-Cap Growth & Value
- Small-Cap Growth & Value
- Cash
Weekly Market & Economic Recap
To keep current subscribers better informed, subscribers will receive a weekly stock market and economic recap of the past week, as well as a list of potential developments expected to affect the market over the upcoming week. This update will be emailed every Monday.
Monthly Webinars
Current subscribers will also be invited to attend a monthly webinar to discuss current Think 2 Retire investment models and the surrounding economic outlook. To have a more direct and open dialogue with subscribers, the Think 2 Retire staff and management will hold monthly live webinars. These webinars will discuss a myriad of topics, including methodology, current positions, and current economic conditions.
The goal is to better inform subscribers about all models and foster an open, engaged environment.
Because Think 2 Retire, and AIA do not provide individual investment advice to its subscribers, the weekly Market and Economic Recap and the Monthly AIA Webinars should not be construed as such.
The Best Offense is a good Defense
During periods of market distress, its better to reduce stock market exposure than ride out stock market turbulence. Reducing portfolio losses during periods of market decline can help produce improved long-term results.
Said another way, if one can reduce investment losses in bad years, the gains in strong years can help provide healthier overall long-term growth. Not to mention less fear and anxiety.
In an effort to reduce portfolio losses, AIA uses 2 separate risk management tools to assess market strength or weakness.
During periods of impending market weakness, Think 2 Retire will issue an Alert suggesting a shift away from stock market positions in favor of safer investments such as bonds and money market accounts.
For details, see the Risk Management Indicators page and watch the video from the Video Library.
It is important to understand that AIA considers both “Cash, Bonds, Money Market Accounts and other Fixed Accounts” as potential allocation choices. Therefore, in times of market distress, AIA will suggest reducing exposure to stock/equity holdings in favor of cash and/or fixed alternatives. The goal here is to reduce portfolio volatility and preserve account value. This is explained further below in “The Process” as well as in the Think 2 Retire video library.
Think 2 Retire is not acting as your financial or investment advisor and will not provide individual investment advice. We are simply helping the subscriber help themselves. Again, this can potentially save thousands over the cost of hiring and paying an investment professional to provide a similar service. Again, one of our primary objectives is to reduce risk and volatility without sacrificing long-term growth.
Additionally, Think 2 Retire strives to help subscribers avoid market disasters. By delivering asset allocation information based on current market and economic conditions, not opinions for speculation, we aim to help the subscriber avoid and survive the potentially disastrous effects of Bear Markets, market corrections, and crashes.