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Tactical Investing

BFA’s Investment Philosophy evolved as a result of simple, straightforward observations we’ve watched play out over the past several decades. Assimilating changes in technology, the capital markets and advancing studies in behavioral finance, we now embrace three (3) Primary Investment Factors as the key ingredients for investing success:

RELATIVE STRENGTH, when paired with classic fundamental analysis, can be a significant contributor to performance, based on “best-in-breed” selection (asset class, sector and style) to construct and manage client portfolios such as:

Our Tactically-managed Accounts, or TMA’s (which hold exchange-traded funds, or “ETF’s”) are designed to suit the individual’s personal tolerance to risk, along with granting flexibility to own a range (minimum %, to maximum %) of growth-assets like equities, according to ever-changing market risks;

“Theme” or “Factor” Investing via stock models to reduce costs and improve performance. By combining different investment attributes represented in BFA’s “Aggressive-Multi 3”, “Beta-optimized Balanced Growth” and the “Dividend & Momentum” stock models, diversification can improve the overall balance between return and risk; as well as

Sector-rotation, International Equity, Commodity & Fixed-income (like bonds, preferred stocks) models that can be incorporated to broaden asset class diversification when combined within the TMA Accounts or Stock Models.

INVESTMENT DISCIPLINE.  By systematically calculating, quantifying (Relative Strength, Financial Ratios) and managing (Investment Risk), we lessen the detrimental psychological pitfalls that can interfere with sound investment planning.

BFA’s D.R.E.A.M. System© monitors ever-changing levels of risk present in the capital markets, and prescribes actions to change portfolio exposure to those risks. It is an evidence-based, systematic, rules-driven model that was inspired to avert market meltdowns. In practice it has been shown to reduce overall stock market volatility over most market cycles.

The D.R.E.A.M. System© is a Dynamic Risk Evaluation & Allocation Management system copyrighted by Bearing Financial Advisors, LLC.

Though we have time-tested models that have performed well over time, equally-important to our clients is how we adhere to systematic decisioning processes for asset class selection and investment risk management. This is what distinguishes us from most financial planning companies who believe that simply diversifying, buying and holding positions—regardless of the health of the markets, is the way to “manage” risk.




No asset allocation system can guarantee growth and preservation of capital, nor insure against losses. The “Stock Market” references the price performance of the S&P500 Index. See, to view closing price 9/8/11 of 1,185.90 and closing value of 1,437.92 on 9/7/12. The positive return of 21.25% over that period does not include dividend income received over that time period.