What is the basis for The Dynamic Advisor?
Hedgeable built The Dynamic Advisor from scratch. It is based off a technique called Dynamic Asset Allocation. Most of you are familiar with Buy and Hold investing and Modern Portfolio Theory. With Buy and Hold investing advisors will periodically “rebalance” your portfolio back to pre-determined weights, usually quarterly. This means that they will buy things that have decreased in value, and sell things that have appreciated (buy low, sell high). This is a terrible way to invest, because it is very rigid and opens you up to very large losses. Dynamic Rebalancing is the exact opposite of Modern Portfolio Theory. There are no pre-defined weights, instead your portfolio is allowed to react to shifting conditions. Rather then selling things that have appreciated, you will sell things that are losing money and move the proceeds to something safe until the market recovers. Hedgeable is the first company, either offline or online, to offer this type of service to the general public. Previou
