Welcome to The Intelligent Allocator
The Intelligent Allocator (TIA) is all about personal empowerment in financial trading and investing.
First, the problems: The landscape of investing has always been rife with danger, misinformation, sensationalism, and confusion. To make matters worse, the financial services industry and regulatory boards - organizations designed at face value to enhance the investor experience and lead to better investor outcomes - have deep seated, inherent conflicts of interest, which result in mainstream financial advice and models being deeply flawed.
Much of what is masquerading as news in the financial media is actually entertainment or worse, misinformation.
A significant portion of financial advisors and brokers are undereducated, look at risk in the wrong way, and are not incentivized to work in their clients' best interest - their advice is a commodity and their fees and commissions do not justify their services.
In response to the inadequacies associated with many traditional financial advisors, and due to fortuitous economic conditions associated with near a decade of low volatility and risk-asset price inflation, an industry of robo-advisors and peddlers of passive index investing has sprung up and flourished. While passive investing and robo-advisors do function to lower costs and reduce mistakes made by many individual investors and the undereducated portion of the industry, they still provide homogenous advice with relatively little value add outside of fee reduction. They base their recommendations on Modern Portfolio Theory, which is predicated on the idea that passive allocations to stock and bond portfolios is the best option for investing for the long term - this is a false premise.
The response: TIA views markets and risk in a different way. Based on years of industry experience, intense research and study of successful traders and investors, and intense research and development of algorithmic trading models, TIA believes that neither the traditional financial advisor nor the passive robo-advisor is a good solution for managing risk and attempting to capture returns from an investment portfolio.
TIA believes that an investment portfolio should be built mostly from alternative investments – via a combination of allocations to alternative strategies applied to traditional asset classes and outright allocations to alternative asset classes.
The goal of this website is three fold:
1) Educate readers. Provide insight on the financial advice industry from an insider’s perspective. Discuss the risks associated with different styles of investment and discuss strategies for achieving outsized returns (both on an absolute and risk-adjusted basis) relative to the investment industry’s standard models and constructs. Help readers get a real feel for the conflicts of interest that remain deeply seated in this industry and speak about ways to overcome these conflicts. Help readers get a real feel for their risk tolerance and understand what risks different investment options exposes them to.
2) Provide simple and easy to follow trading strategies designed to increase returns and lower risk relative to those provided by the mainstream financial advice industry. These strategies are based on empirical evidence and, I believe, give an investor the best chance of success in the markets. The Intelligent Allocator’s Alpha Momentum Strategy is the flagship program.
3) Provide simple and easy to follow asset allocation models to increase portfolio returns and lower risk relative to the asset allocation models provided by the mainstream financial industry. By incorporating the Alpha Momentum strategy with other alternative asset classes, we can increase the chances of achieving outsized returns with lower risk than traditional investment methods – smoothing the ride for the average investor and leading to better investment outcomes than offered by more traditional investing methods.
If you are interested in learning about a stock trading strategy designed to provide far superior results to traditional buy and hold strategies with much lower risk, head over to our ALPHA MOMENTUM STRATEGY page to learn more.
Finally, as time goes on, I will build upon the content and strategies outlined here to help our readers build a better understanding of markets, investing, and alternative asset allocation models all with the goal of providing better absolute and risk adjusted rewards, and ultimately designing and sticking with a portfolio strategy that is right for them.