Why Oak Grove Capital

Managing within the Global Economic Environment

A truly global, risk-managed approach to investing will be increasingly important for superior investment management in our lifetimes. Between 2000 and 2010, US equity markets experienced five declines of 25% or more. Large market declines caused fear and panic. Fear and panic led to chronically bad investment decisions. Wall Street describes this period as the “lost decade” for US equity market returns. The Dow Jones Industrial Average, the S&P 500 index and the Nasdaq Composite index all were lower at the end of the ten years.

The unfortunate conclusion is that the performance of US equity averages heavily and unduly influenced the returns of many US investors’ qualified plans and other investment accounts over Wall Street’s “lost decade.” Over the same period, basic materials, precious metals, various fixed income, and non-US equity markets offset negative US equity returns with significant gains. A disciplined asset allocation strategy that was focused on managing risk would have captured superior results without requiring 20-20 foresight. This – a disciplined tactical and strategic asset allocation process – is the core of our risk-based investment management approach. Please consider our statements on our approach, process, and experience – accessible via the links on the right margin of this page – for a more complete picture of what we stand for and how we choose to differentiate ourselves in serving our clients.