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Multiple Asset Class Investing:
Strategies for Inflation, Volatility,
and Principal Protection


By Chris Ciovacco
Ciovacco Capital Management
January 2008


Principal Protection Should Be Your Top Priority During This Credit Crisis and Period of Deleveraging

In 2008 and possibly into 2009, all asset classes may come under pressure. The bull market from 2003-2007 was aided greatly by easy access to credit, which helped drive up prices in almost all asset classes (stocks, bonds, real estate, commodities, gold, art, classic cars). As credit contracts and individuals, banks, and numerous corporations attempt to shore up their balance sheets due to falling asset prices, the odds are stacked against investors. Keeping some powder dry to invest when credit conditions improve should be your top priority. It is going to take some time, longer than most people think, to repair the credit markets. When the credit markets improve, patient investors will be presented with some attractive buying opportunities. During bear markets, sharp and powerful countertrend rallies are the norm. As long-term investors, we care about where stocks will be in a year or two, not the next six weeks. Bear markets can last several years and can destroy principal rapidly. After the bear market, inflation concerns will again take center stage.

Recent CCM Research and Commentary

Asset Allocation and Portfolio Management Statement of Purpose

To give investors a reasonable probability of producing superior full-market cycle returns under varied market conditions while reducing volatility and providing numerous safeguards against the loss of purchasing power due to inflation.

The objective is to provide the rationale and benefits of multiple asset class investing.


Chris Ciovacco
Ciovacco Capital Management

Atlanta Independent Money Management Atlanta Chris Ciovacco is the Chief Investment Officer for Ciovacco Capital Management, LLC. More on the web at www.ciovaccocapital.com

All material presented herein is believed to be reliable but we cannot attest to its accuracy. The information contained herein (including historical prices or values) has been obtained from sources that Ciovacco Capital Management (CCM) considers to be reliable; however, CCM makes any representation as to, or accepts any responsibility or liability for, the accuracy or completeness of the information contained herein or any decision made or action taken by you or any third party in reliance upon the data. Some results are derived using historical estimations from available data. Investment recommendations may change and readers are urged to check with tax advisors before making any investment decisions. Opinions expressed in these reports may change without prior notice. This memorandum is based on information available to the public. No representation is made that it is accurate or complete. This memorandum is not an offer to buy or sell or a solicitation of an offer to buy or sell the securities mentioned. The investments discussed or recommended in this report may be unsuitable for investors depending on their specific investment objectives and financial position. Past performance is not necessarily a guide to future performance. The price or value of the investments to which this report relates, either directly or indirectly, may fall or rise against the interest of investors. All prices and yields contained in this report are subject to change without notice. This information is based on hypothetical assumptions and is intended for illustrative purposes only. PAST PERFORMANCE DOES NOT GUARANTEE FUTURE RESULTS.