Frequently Asked Questions

Browse our FAQ below to see answers to commonly asked questions.

• What is the Asset Rotation Model?

  The Asset Rotation Model (ARM) is our flagship Investment Model, designed to provide a complete portfolio management solution for individual investors.

• How does the Asset Rotation Model work?

  The Asset Rotation Model dynamically switches between stocks and bonds to achieve outstanding returns while exposing your portfolio to significantly less risk than traditional investment approaches. Learn More

• Who should use the Asset Rotation Model?

  The ARM is designed for anyone who is investing outside the confines of an employer-sponsored retired plan. It’s low turnover makes it ideal for those investing through taxable accounts, IRAs, Roth IRAs, 529 plans or HSAs. 401(k) investors who have a “brokerage option” may also want to follow the ARM instead of the 401 Model.

• What role should the ARM play in my overall portfolio?

  The Asset Rotation Model is designed to be the backbone of your investment portfolio. The majority of your investments should follow the ARM due to its strong performance characteristics and low risk profile. Then you can take a more speculative approach with your remaining funds.

• Where can I see the ARM’s historical performance?

  You can view the ARM’s historical backtested performance here. Pay special attention to the table of risk metrics, it’s important to understand that the ARM’s outperformance does not come as a result of taking on more risk. In fact, the ARM exposes your money to significantly less risk than traditional investment approaches.

• How does the ARM achieve such high performance?

  The ARM uses a completely different approach to investing than traditional portfolio management. Instead of splitting your money between stocks and bonds and staying invested regardless of market conditions, the ARM selects either stocks or bonds to invest in, based on the current and expected performance of each asset class. Learn More

• Where can I see the latest ARM recommendations?

  You can see the latest ARM recommendations here. Access requires a premium subscription.

• How do I use the ARM?

  Using the ARM is simple. Each month you will receive an alert when the latest ARM recommendations have been posted. Simply log in to your brokerage account and make the appropriate changes to your investments. Learn More

• I’m already retired, can I still use the ARM?

  Yes. People are living longer these days and it’s important that your money continues to work for you during retirement. Because the ARM has been able to generate higher returns than both stocks and bonds, and also avoid major losses during market crashes, we feel comfortable recommending it to all investors. For more information on how to de-risk your portfolio during retirement, please see this article.

• Will I incur transaction costs while using the ARM?

  Yes, but they should be negligible. We designed the ARM to use low cost ETFs and make a minimal number of trades each year. This helps you reduce expenses, which can make a big difference over the long run.

• What happens to the ARM if the stock market crashes?

  The ARM is able to recognize developing periods of stock market weakness and will typically move the portfolio to bonds during the early stages of a crash. This limits losses and is one of the primary benefits of the ARM. When the stock market begins to recover, the ARM will move back into stocks.

• Does the ARM provide any international exposure?

  Yes, the ARM provides indirect international exposure when invested in stocks. Whenever the ARM selects U.S. stocks, it uses the exchange-traded fund SPY for exposure to the S&P 500. As a group, the S&P 500 companies receive between one-third and one-half of their revenues from overseas.