Page 7 - Strategy Flipbook v.2_Classical
P. 7
The Canterbury Portfolio Thermostat
Process
Step Three: Construct an Efficient Portfolio to Match the Current Market Environment
After identifying the current Market State, the Portfolio Thermostat determines an optimal combination of securities that
will perform best given the prevailing traits and activity of the markets. It will only invest in the strongest ETFs that are
bullish (i.e. exhibiting low or decreasing volatility), while avoiding those that are bearish (exhibiting high or increasing
volatility). The Portfolio Thermostat monitors and adjusts ETF holdings to move in concert with the changing market
environments and works to keep your clients’ portfolios in the green zone.
