At Silverleafe, we distinguish between volatility and risk. Market volatility is associated with economic expansions and the shorter-term oscillation of the market within a longer-term upward trend (i.e. bull markets). As long as our economy is expanding, our clients understand and accept there will be volatility associated with the markets.
Market risk typically occurs during recessionary economic conditions which can lead to larger, longer negative return periods (i.e. bear markets). These are the risks to our clients’ prosperity since their wealth maintains their lifestyles. When the probability of a recession increases, we utilize a proprietary methodology to determine if we should begin to reduce risk by liquidating assets.
It is the differentiation between market volatility and risk which distinguishes Silverleafe from its peers.