The approach at 1db asset management (1DBAM) is to provide personalized asset management services in a disciplined, conservative, tax efficient manner.
Asset allocation is the bedrock of our investment philosophy. In today’s global market environment we contend that the allocation of assets is as critical as the selections themselves in addressing performance and managing volatility. Since the year 2000, the Wilshire 5000 composite stock market index has virtually remained flat, during which quality dividend paying stocks outpaced aggressive growth throughout both the internet bubble and the recent financial crises. In fact, the healthcare, consumer staples, utilities and energy sectors outperformed the market averages in the past 10 years and rewarded their shareholders handsomely. Nevertheless, retail investors have cast their votes aloud by exiting the risk-on assets (stocks) and entering the risk-off assets (bonds) as interest rates fell to historic lows. What’s next? What will happen if and when interest rates increase? Is our nation’s debt manageable? Are our politicians equipped and willing to make the right decisions? Will global unrest alter our way of living? Analyzing the “what’s next” is hard work. It is in the investigation of the “what ifs” that we identify the best options to guide our clients and provide our services.