The Lyons Tactical Allocation Portfolio is based on our belief that equities offer a favorable risk/ reward trade-off over time, and that minor market gyrations and disruptions do not warrant frequent defensive shifts. Our value investing philosophy is that we can outperform by investing in the stocks of strong companies available at good prices, and seeking the relative safety of a defensive allocation only when we perceive market risk to outweigh the reward.
Our Approach: Offense First, Defense Next
During most normal market cycles, we strive to outperform the market averages. Most tactical portfolios focus so heavily on defense that they underperform the S&P 500 during normal market conditions. We focus on offense first, building a portfolio of individual, dividend-paying stocks. Then we look at defense, seeking to navigate only sustained market drawdowns. Our goal is to participate in long-term equity market growth by being fully invested, yet offer the potential to avoid sustained declines.