Cornerstone Strategy Details
Granite’s Cornerstone Strategy is an actively managed growth and income strategy that employs Tactical & Strategic Asset Allocation Methods to invest in broad asset classes like stock indices, bond indices and ETFs.
Unlike the traditional buy & hold portfolio offered by most investment advisors, Granite embraces financial science to continually re-evaluate market conditions and make portfolio allocation adjustments on a monthly basis. This allows us to capture major market trends while dramatically reducing downside market exposure.
For example, instead of maintaining a consistent 60% stock/40% bond portfolio ratio as many advisors recommend, Granite will adjust that ratio on a monthly (and sometimes bi-weekly) basis. So if we are in a bearish/down-trending market, we may adjust the allocations to be 10% stock and 90% cash/bonds (essentially taking most of the downside risk off the table). Alternatively, if the market is in a general uptrend, the allocation may be adjusted to 80% stocks and 20% bonds (capturing more of the upside market potential while monitoring for any signs of weakness ahead).
We accomplish this re-allocation approach by studying, tracking and then implementing some of the industry’s best known and proven tactical asset allocation strategies. This investment style isn’t something that Granite “invented”; rather, it is a tried and true investment approach that is used by many top investment managers around the world today.
The end result is that we are generally able to capture/mimic the upside performance of the broader equities market while substantially reducing the downside risk associated with the typical buy & hold portfolio offered by the average money manager.
To be clear, Granite is not necessarily trading different assets than the typical investment advisor is trading (we're still investing in very common, highly liquid ETFs, bonds and broad-based indexes)... we are simply tweaking the asset allocations more frequently. This allows us to effectively capture the market trends while ignoring the daily market “noise” and dramatically reducing downside risk exposure.
These charts are what make Cornerstone DIFFERENT
Are you properly prepared for the next market meltdown ?
The two charts below are meant to demonstrate the Cornerstone's resilience during two distinct turbulent market events.
The 2000 Dot-Com market crash and the 2008 Global Financial Crisis Market meltdown.
For detailed up-to-date performance information, please see our Performance Info Page