From Our Blog:

INVESTMENT STRATEGY

The (Queen’s) Gambit of Investing

Netflix has another mega hit on its hands with the recent release of The Queen’s Gambit, which is now the streaming service’s most-watched scripted limited series to date with 62 million views in the first month. The show follows chess prodigy Beth Harman on her journey to become the world’s best chess player.

Between quarantine and the popularity of this show, many have taken up an interest in chess, so much so that chessboards sold out at many retailers. When you learn to play chess or watch The Queens Gambit, you quickly realize that the game is all about strategy – thinking about your next move(s), your opponent’s move(s), protecting your queen, identifying weaknesses, and executing the best game plan.

These same principles closely tie into some of our keys to investment success.

Investing for all Seasons

Beth’s remarkable ability to visualize the game and anticipate her opponents’ next move is what helps to set her apart from the competition. She makes calculated and measured moves. Similarly, we map economic data measurements to help us determine the next market move or shift in “season.” Investing for all seasons is based on the idea that different types of investments (both stocks and bonds) act differently depending on which “season” the market is in. Based on this information, we align your portfolio with the prevailing economic environment.

Minimize Large Pitfalls

Chess is all about moves and countermoves. The same idea can be applied to our risk-adjustment methodology. Similar to Beth’s ability to change her game plan when needed, we have the ability to systematically shift your portfolio’s risk level in accordance with your predetermined risk parameters. We do this in an effort to protect your principal and prevent catastrophic portfolio losses during periods characterized by economic recession, extreme volatility, and negative technical readings (weak pressure, weak breadth).

How We Can Help

If you are like me, even after watching the whole series, you are still left wondering what exactly a queen’s gambit is. Turns out the queen’s gambit is one of the oldest opening moves in chess and is still common today. It is called a gambit because white appears to sacrifice the c-pawn, but black can’t retain the pawn without incurring a disadvantage.

Investing can also be considered a gambit as there is a degree of risk in order to gain a reward. At GGM our goal is to help you navigate the prevailing economic environment. We strive to reduce the risk and earn the reward. If you think you could benefit from our investment discipline, contact us today.

 

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