Blue Chip Income
Strategy Description
The objective of the Blue Chip Income model is capital appreciation with downside protection. The strategy invests in a diversified portfolio of Blue Chip stocks and ETFs in low risk markets and protects principal in high risk markets by moving up to 100% in cash. In addition to capital appreciation and downside protection the strategy will focus on income generation by investing a portion of the portfolio in above market income producing (higher yielding) stocks and ETFs. Exposure is adjusted by monitoring long‐term market trends to evaluate the risk/reward of owning equities versus protecting capital.
Key Benefits
- Ability to move up to 100% cash
- Strict and unemotional sell discipline using both technical and fundamental criteria
- Broad sector diversification and low turnover for tax efficiency
- Blue Chip stocks offer high quality, consistency, and the ability to operate profitability even as economic growth changes
- Diversified portfolio of income generating stocks and ETFs, providing dividend yields that are greater than short term bond yields