Paragon Chief Investment Officer Jon Castle Interviewed by The Suit Magazine
Recently, the online magazine, The Suit, called and conducted an interview with me concerning our overall investment process. I appreciated the opportunity, and did my best to describe PARAGON's hybrid approach to investing.
In general, our investment involves focusing on the things we CAN control (costs, portfolio equity risk) and then, through the portfolio risk management process (in other words - how we actually STRUCTURE the portfolio), being able to accept and "endure" the things that we cannot control (unexpected world events, sudden market corrections, etc).
In a nutshell - our process generally looks like this:
1) Using the last 100 years of data as a guide - realize that about 70% of the time, the market goes up. The times that it goes down - especially during those awful times we call "crashes," usually involve economic recessions. When the market drops without these recessions, those corrections are generally short-lived, averaging 4 months or less.
2) If we are NOT in a recession - we should generally invest to try to take advantage of a market mostly going UP. In other words, build the portfolio with very low-cost investments, and seek gather up as much of the market gains as we can without taking too much risk.
3) We control risk of those unexpected, non-recessionary corrections by adding generally safer assets - usually bonds - in the portfolio. So - if an investor only desires to experience 50% of the market's unexpected downsides - then we would only have 50% of the portfolio on stocks. Of course, a lower long-term rate of return is to be expected.
4) When the overwhelming consensus of the DATA (not prognosticators - but DATA) suggest recession is imminent - then we seek to exit the market entirely and invest only in assets that tend to generate positive returns during a recession.
As always, when someone else writes the article about an interview, one always wonders how well they actually captured the essence of what you are trying to say. I think they did a good job. To read the article, click HERE.
Jon Castle serves as Chief Investment Officer for PARAGON Wealth Strategies, LLC. Please see his bio here: Jon Castle
Please remember that different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment or investment strategy (including those undertaken or recommended by PARAGON Wealth Strategies, LLC), will be profitable or equal any historical performance level(s). For additional disclosures please click here: Disclosures