Investing Options for Defensive Investors

Many investors are interested in implementing an asset allocation plan that allows their portfolio to play defense in a declining market. This is also known as a capital preservation strategy.

However, most individual investors don’t know how to help their portfolios “zig” when the market “zags.”

At Navellier, we’ve created unique portfolio solutions for defensive investors.

Navellier Dynamic & Tactical ETF Portfolios: These portfolios offer a suite of defensive ETF holdings designed with the primary goal of protecting assets during extreme stock market downturns. The real power behind the portfolios comes from their ability to take defensive positions in cash or bonds when conditions warrant.

Covered Call Portfolio: The strategy with this portfolio is to buy stocks and simultaneously write call options against them. This allows the portfolio to generate income (via the premiums earned on the calls and the dividends). The strategy’s goal is to achieve premium income while forfeiting the least amount of stock appreciation. To generate greater growth potential, the strategy will generally write covered calls on only a portion of the equity positions in the portfolio and will generally focus on higher dividend paying companies.

Our suite of defensive portfolios

  • Are managed by Navellier Portfolio Managers.
  • Implement a rigorous testing process.
  • Are adjusted to adapt to changing market trends.

To find out if any of these portfolios could work for you, simply call us at (800) 887-8671 or fill out our Portfolio Review Request for a personal portfolio review and confidential assessment to get started today.

Defensive Alpha Portfolio (DAP): This portfolio invests in a select group of companies across a broad capitalization range. Typically, the portfolio holds up to 20 stocks. When the S&P 500 Index goes up, DAP’s equity position can increase in high Alpha growth stocks, up to 20 stocks selected to outperform the S&P 500. When the S&P 500 Index goes down, DAP can react by trimming the portfolio and moving into cash to be reinvested again at the right time.

U.S. Equity Sector Plus Portfolio: This is a diversified portfolio including domestic equity and fixed income components using iShares®and PowerSharesETFs.

U.S. Equity Sector Plus featuring AlphaDEX® Portfolio: A diversified portfolio including domestic equity and fixed income components using AlphaDEX®ETFs from First Trust Portfolios L.P. along with iShares®ETFs.

The goal of these nimble portfolios is to out-perform up markets and limit losses in declining markets by moving to cash or bonds when conditions warrant.

Despite some wild stock market gyrations over the last 6+ years, these portfolios have strived to have smooth and steady returns.

Our portfolios are best used along with other styles and asset classes.

A Look at Our Custom Portfolios

At Navellier, we recognize that you are a unique investor with goals, risk tolerances and other factors that need to be considered for a complete investment strategy. This is why we look at the whole picture and make custom recommendations that suit your unique investment needs.

For example, if you are interested in implementing a defensive, capital preservation strategy, but also want to capitalize on large cap stocks and include income-generating holdings, here is a very simple sample of how we could blend three of our portfolios to achieve your goals within your preferred risk tolerance.

For more information on our Private Client Group, and how we may be able to put together a custom asset allocation strategy designed to fit your specific investment goals, please call us at (800) 887-8671 or fill out our Portfolio Review Request for a personal portfolio review and confidential assessment.

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Performance results presented herein do not necessarily indicate future performance; investment in equity strategies involves substantial risk and has the potential for partial or complete loss of funds invested. Results presented include reinvestment of dividends and other earnings. None of the stock information, data and company information presented herein constitutes a recommendation by Navellier or a solicitation of any offer to buy or sell any securities.