Leverage The Power of Logic
The CCM Market Model is a proprietary asset allocation algorithm developed by CCM and used exclusively to manage discretionary accounts for our clients.
PRUDENT ALLOCATIONS BASED ON FACTS
The model determines prudent investment allocations based on the market's risk-reward profile. When you have worked hard to accumulate investment capital, the long-term goal is to leverage the miracle of compounding by attempting to produce consistent and satisfying returns, rather than the ego-driven and flawed objective of "beating the market" every year.
CONSISTENT vs. "MARKET BEATING"
As evidenced by the figures in the table above, it is not necessary to beat the market every year to outperform the market over a full market cycle. Large bear market drawdowns, such as the 50%-plus drop that occurred in the S&P 500 between October 2007 and March 2009, are very difficult to recover from mathematically.
TACTICAL ALLOCATION VS. BUY-AND-HOLD-AND-HOPE
It is not prudent to hold bonds when the odds clearly favor stocks. It is not prudent to hold stocks when the odds clearly favor bonds (see second half of 2008). In many market profiles, it is prudent to hold both stocks and bonds; the model determines a rational mix based on hard data.
The miracle of compounding can work for investors or against investors. CCM's approach reduces exposure to growth-oriented assets when the evidence shows signs of meaningful deterioration. CCM's evidence-based algorithm can reduce the probability of large and sustained portfolio drawdowns. Many common questions about the CCM Market Model are addressed in the FAQs.