SaVvy 

The mainstream’s traditional method of investing is called “Modern Portfolio Theory.”  Modern portfolio theory states that by allocating money into bonds, stocks, and real estate an investor’s portfolio may be protected in the event a financial collapse occurs.

Volatility is change fueled by fear or greed.  Major shifts in political power, changes in legislation, and fundamental economic health are examples of highly volatile events.  Volatility is two-sided.

The SaVvy investment philosophy states that when investors buy stocks or bonds, their portfolios may gain in value as the stock market goes up.  Investor’s portfolios are heavily exposed to “ice.”

Bubbles form in stock prices when there is a disconnect between reality and fundamentals. In the case of stock bubbles, the disconnect forms when stock prices surpass stock earnings.

SaVvy investors believe money can take on 3 different forms: physical gold, cash, or stocks/bonds.  As seen in Bubble Talk, investor’s greed prompted real estate to become highly correlated to stocks and bonds during the mortgage meltdown of 2008.

DING, DING! Legislation enters the ring against volatility in an attempt to try to suppress fear and greed. Legislation has been passed but fear and greed cannot be contained.  History has shown when legislation steps in,

SaVvy investors see investing like a game of chess.  Each piece in chess has a particular path it can move.  The SaVvy investment perspective believes the major pieces in the financial markets follow the same logic.