Fair Weather Strategies rejects the widely held concept that more volatile stocks and sectors will necessarily provide higher return. History has shown that at least in the United States, over the long term, higher “beta” stocks (i.e. stocks with that are more highly geared to market ups and downs) have under-performed less flashy, steadier stocks.
We seek out these steadier stocks in building our portfolios.
Investing, as applied to our actively managed portfolios, aims to keep the investor holding a security only as long as it maintains an upward price trend. When the security is no longer able to maintain upward momentum, the security is sold and the proceeds moved to a cash or cash equivalent holding until such time as momentum returns.