Introduction to STIR Research Groups
The investment industry is remarkably vibrant and incredibly demanding – it needs to be. Information is measured in seconds. Processes are calibrated in real time. Innovation transforms. Investors and advisors are demanding financial information and the resources to make a more informed decision. And increasingly, the Web is seen as the best source for timely news, objective commentary, and useful interactive research tools.
STIR Research provides these products and services through an internet subscription service. With three tactical and absolute return portfolio groups, and five Index portfolios. STIR covers virtually every market segment.
The STIR portfolio groups and the individual models located within the groups, have particular goals with set parameters they wish to achieve. The tactical research models that we cover in-depth are different in their own way but have one common denominator, quantitative analysis.
While the stock market has historically provided superior returns over the long-term, it will experience lengthy cycles of strong returns and weak returns, secular bulls and secular bears. We need a strategy to cope with all types of markets (weak or strong, secular bull or secular bear) when they occur.
STIR Research applies tactical allocation and absolute return portfolios to the equity and bond markets. Divide and Conquer, by breaking the overall market into smaller manageable parts, apply a consistent method of analysis to achieve a return that is greater than the overall market and with less risk. The goal of tactical allocation is to achieve more consistent, Higher Returns with Less Risk.
Flexible Asset Allocation Research
Asset allocation decisions will account for 80% of a portfolios performance. STIR Research Flexible Asset Allocation (FAA) strives to build diversified portfolios by identifying the leading asset classes for portfolio inclusion and performance and to identify the lagging portfolio draining asset classes for exclusion, with the flexibility to change the allocations and exposure along with changes in the economy and the stock market. The STIR Flexible Asset Allocation (FAA) Research is universal in nature and not directed towards a specific fund family. Many investment platforms are available today that cover multiple families or ETF’s, where a multitude of asset classes are available.
STIR offers 10 different model portfolios in this group that are active and flexible. Each clearly identifies the leading asset classes for portfolio inclusion. Equity, bond selections, and allocations are constantly monitored and adjustments are made as leadership or the market changes. Each model represents a portfolio that allocates assets into leading asset groups demonstrating greater relative strength and momentum
Just how much will an active, flexible, asset allocation add in future investment returns, no one knows for sure? However, history being a very good guide, STIR maintains a goal that with a Flexible Asset Allocation you could add 4 to 6 percentage points (400 to 600 basis points) in annualized returns. And that can be significant if you are looking at the next 15 to 20 years, whether building to retirement or in retirement.