Can the model be tailored to my personal risk tolerance?
Yes. We can use answers about goals and risk tolerance on the CCM Client Profile to adjust the model’s base recommendations if needed. For example, allocations to more volatile ETFs or sectors, such as semi-conductors, can be adjusted up or down based on the client’s needs.
Since they are selected by the model based on present day facts, all clients own the same ETFs, with a few possible exceptions from time to time. ETF weightings can be adjusted slightly to accommodate varying tolerances for risk.
During prolonged corrections or bear markets, larger incremental defensive steps can be taken for clients that wish to have their portfolios managed in a more conservative manner.
In most instances, incremental steps or position weightings are adjusted in relatively small increments to make sure all clients stay invested in line with present day market data.