Chris Coolidge, Chief Investment Officer of Brookwood Investment Group, joined Julie Cooling, Founder and CEO of RIA Channel, at the GTE Wealth Forum to discuss the inclusion of liquid alternative investments in portfolio construction.
Brookwood is a national RIA with 75 advisors, focused on empowering advisors to grow their businesses. The firm offers an institutional portfolio management experience to the wealth management platform. Advisors with diverse skills and experience can help other advisors grow their businesses through collaboration. Brookwood was named as one of America’s Top Financial Advisory Firms by Newsweek.
Brookwood offers more modern portfolio construction, moving away from the traditional 60/40 stock/bond mix. The recommended allocation is 50/30/20, with 50% in equities, 30% in liquid alternative investments, and 20% in fixed income. This portfolio offers diversification benefits and helps advisors tell a more compelling story. Brookwood seeks liquid alternative ETFs with low correlation to stock and bond market returns, such as managed futures. Recently, the alternative portfolio has been focused on commodities, including gold, silver, copper, and uranium. Rather than being a buy-and-hold investor, the tactical approach seeks to rotate across opportunities, taking profits as valuations become stretched.
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