At Rocky Mountain Private Wealth Management, risk management is the cornerstone of our investment philosophy. How does this differentiate us from other firms? Traditional investment strategies promote a passive buying and holding approach. This simplified approach assumes investing is like a roller coaster ride; investors should just expect and accept their money will go up and down. We believe this is not an effective approach to investing (see capital preservation).
It is our opinion that an investment philosophy should consider the level of risk assets are exposed to on a daily basis. Controlling risk exposure should protect managed assets from suffering large losses. A traditional buy and hold strategy does not take this into account. At Rocky Mountain Private Wealth Management, we evaluate risk every single day.
If, on any given day, the market risk appears low, your portfolio manager can position the model in a more aggressive posture. On the other hand, if the market risk appears high, your portfolio manager can take a more defensive approach, focusing on capital preservation. The result? We believe that over time, this stable approach to investing will produce reasonable returns without taking unnecessary risk.