We all know investing involves risk, which begs the question: what portfolio management strategy works best to translate risk into reward?
What portfolio strategy works best? Well, for Allio, it’s a top-down macro strategy powered by their proprietary investment engine, ALTITUDE AI, powered by advanced machine learning techniques to enhance return prediction and portfolio optimization.
Allio offers customized, but structured macro portfolios equipped with institutional-grade fundamental analysis from Morningstar, and for the first time ever in robo-advisory, precision real-time execution aided by Trading View technical analysis™.
A New Approach for Modern Investors
Do you have extensive experience in financial markets with a high-level understanding and knowledge of investments? Maybe you’d even go as far as comparing yourself to the investor-savant Warren Buffett. Whatever the case, you consider investing second nature, but regardless of your experience, your financial welfare is inexorably tied to the performance of your investment strategy and the risk of loss.
One such risk is the always-looming possibility of black swans. Although infrequent, these events can rear their ugly head when you least expect it.
For Joseph Gradante, an NYC finance veteran and CEO of Allio, the potential of a black swan event is on his mind more often than not, especially with the current state of the national and global economy. Gradante graduated during the Great Recession and knows how devastating an event like that can be. But rather than shying away from the “monster”, he saw the unlikely bright side of the situation.
The Recession of 2008 emphasized to Gradante the importance of adapting to change without fear. With this comes massive opportunities for those who are focused, especially in the market.
“Many people fear finance because the perception is that it’s all quantitative, when in fact navigating capital markets is more of a combination of psychology and economics,” says Gradante.
The Top-Down Approach to Investing
It’s in this combination of the quantitative and the qualitative that the top-down approach to investing emerges. Allio’s latest feature, Dynamic Macro Portfolios, allows users to take a top-down approach to crafting a portfolio by starting with fundamental building blocks like asset classes, sectors, and industries. The recent release of this innovative new approach is timely: as discretionary macro investing is having a resurgence in popularity as an approach to finding clarity in a rapidly evolving geopolitical landscape.
With elevated interest rates, the potential of de-dollarization, and geopolitical tension (all things weighing heavily on Gradante’s thoughts), it’s crucial to take action to secure your wealth – now more than ever.
“Markets are all over the place as a result. I remember a couple of years ago – 2018, 2019, 2020 – everything was great. Markets were booming and record amounts of venture capital were flowing into tech. The cost of gas was low, inflation was low. Everybody was happy,” Gradante reflects.
COVID-19, what some would refer to as a black swan event, changed this, and the economy is still experiencing lingering side effects.
“Now it feels like Orwell’s 1984 is becoming reality. It’s almost Dystopian seeing what’s happening on the world stage. But like I said, something is going to come out of all this and it’s necessary to have exposure to position yourself to capitalize on it, you can’t let it get you down; you have to keep your eyes wide open and follow what’s going on,” he continues.
That’s why it’s so important to have a trusted and reliable partner to help safeguard your wealth and ensure your portfolio is built to withstand unexpected fluctuations in the market.
Allio: Your Trusted Financial Partner
To safeguard your wealth and ensure your portfolio withstands unexpected market fluctuations, Allio was designed to be the most intuitive and user-friendly financial app on the market. They offer unrivaled customization, allowing investors to build and manage their own portfolios with advanced financial technology.
Whether you’re seeking an expert team to manage your money or looking to build your own portfolios with the best financial technology available to help you chart your course, Allio has you covered.
Allio’s Managed Macro portfolios combine the ALTITUDE investment engine with the expertise of capital markets veterans to create strategic portfolios. Their flagship strategy, the Allio Macro Portfolio, blends strategic and tactical asset allocation to position client portfolios for success.
Harnessing Machine Learning for Investment Success
The team spent a few years building its proprietary investment engine. Unlike other robo advisors that just use historical returns, Allio’s has factored in probability correlations and future forecasting models with historical returns for all asset classes in their engine. This even includes some alternative sectors like commodities and gold, giving them a defensive baseline, so their team can focus their time looking for opportunities to generate Alpha based on a combination of machine-learning derived price forecasting signals and their deep capital markets experience.
“Machines are great for running lots of calculations for multiple scenarios simultaneously, but they’re not particularly capable of adapting to new market environments. This is where the human touch comes in,” says Gradante.
Empowering Informed Investors
For those looking to take a more active role in their finances, Dynamic Macro Portfolios™ have breathed new life into the robo advisory space by making the sophisticated simple. Allio’s clients can customize their portfolios and adjust their allocations in real time based on their preferences, whether that preference is a specific security or exposure to a sector or industry. This unique feature is combined with tax optimization and real-time market data/execution, along with technical analysis by Trading View, Morningstar powered Fundamental Analysis, and AI-generated market insights from MarketReader to give clients the ultimate set of tools for their portfolio.
“When investing, it’s more important to understand what areas are favored by the current macro landscape than it is to be able to pick individual securities”, says Gradante.
Driving Innovation and Managing Risk
Driving this innovation is central to the company’s mission, backed by CEO Gradante who has a background in capital markets and familial relations with Charles Gradante – a pioneer of the early hedge fund industry.
Gradante knows no matter how sophisticated an investor is, risk is always lurking under the surface. But with the right help, there are ways to ensure you’re prepared for it. Allio’s market veterans maintain a close eye on trends and conditions to keep your portfolio strategically aligned with the macro landscape. With their expert-curated strategic portfolios, you’re uniquely positioned to meet the complex, inflationary market conditions of today’s economy.
“It’s not about investing vs trading, but rather having a long-term defensive plan while embracing an opportunistic short-term strategy to generate alpha,” says Gradante. “Markets are a reflection of us – like so many things in history, patterns repeat themselves.”
A Comprehensive Macro Approach
”Allio’s top-down macro approach is a summation of 3 key categories: macroeconomics, politics/policy, and capital markets (with subcategories stemming from each). If you can watch the ebb and flow of these three areas, you will better understand how it affects our markets and (ultimately) your money”, Gradante explains.
As discussed, investing involves risk, no matter how experienced one is. And with so much going on in the world – the potential of more interest rate hikes, de-dollarization, and geopolitical tension – the uncertainty only heightens the risk for people’s financial future. Yet, without risk, there wouldn’t be the opportunity for reward. Allio offers strategic investing that balances risk and reward with a focus “on the downside tails of the return distribution – in an attempt to make our portfolios as resilient as possible to market turbulence,” says the Allio team.
Allio’s automated investment portfolios that use Machine Learning and different optimization techniques for specific strategies, unlike the cookie-cutter approaches used by most robo-advisors, make them extremely resilient to various downside market scenarios.
“The risk mitigation, the machine learning, the investment engine – we don’t completely rely on just that. That’s to give us a baseline because you have to look at all these sectors,” Gradante explains. “We spent a couple of years building this thing. It’s not easy to build future forecasting models for gold and real estate and natural gas and oil, but we did that.”
Big Picture Thinking
Allio’s investment portfolios are not solely based on any single idea or investment strategy. Rather, the team builds its portfolios based on the macroeconomic forces that drive markets, including inflation, interest rates, and the geopolitical landscape. From that data, they can better determine the type of secular market regime we’re in to align the portfolios and achieve an optimal balance of risk and return.
In today’s unpredictable landscape, strategic macro investing is a crucial way to ensure your financial wealth can withstand any sudden changes in the economy. With Allio, you can finally invest with confidence.
Be prepared for the next market cycle and secure your financial future today by visiting their website here.