How Does It Work?


Monitoring Risk

The Safety First System monitors the status of fourteen risk triggers to determine whether they are active or not. When a risk trigger goes active the System will direct you to transfer assets from the weakest fund you own into your safe harbor (money market) fund.

Scoring and Ranking

The Safety First System scores and ranks all of the funds available to you. (Yes, it is tailored to just the funds available to you.) It monitors where each of your funds are positioned within that list. If any of your portfolio funds slip below the top third of the ranked list, the System responds with a directive to “upgrade to.”  That is, to exchange all assets from the fund that slipped to the strongest fund available to you at the time that is not already in your portfolio.

Adapting to Changes

The Safety First System adapts. To know when market conditions change requires constant monitoring of those market conditions. The System assesses dozens of the individual components that make up the broad market. As the characteristics of the market change the System will adapt by selecting a different formula group to do the fund scoring and ranking.