Managing Risk with Bear Market Probabilities

Ryan Zabrowski delves into the strategic use of a rule-based algorithm incorporating 190 factors to assess the probability of a bear market. By adjusting risk levels accordingly, his approach enhances portfolio management. For instance, during periods of low bear market probability, such as after COVID or in July 2022, higher risk was allocated, capitalizing on favorable conditions. Zabrowski highlights that alpha can be generated in various ways: through tax loss harvesting, investing in businesses with sustainable competitive advantages, and tactically reallocating portfolios based on bear market probability. This multi-faceted focus underpins his disciplined investment strategy.

**Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategy discussed herein.

Krilogy Financial, LLC (Krilogy) is a Securities and Exchange Commission (“SEC”) Registered Investment Advisor. Registration with the SEC should not be considered an express or implied approval of Krilogy by the SEC. Krilogy does not provide tax and legal advice. All expressions of opinion are subject to change. This information is distributed for educational purposes only, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investments involve risk and unless otherwise stated, are not guaranteed. Investors should understand the risks involved of owning investments, including interest rate risk, credit risk and market risk. Be sure to first consult with a qualified financial advisor and/or tax professional before implementing any strategies discussed herein.

Managing Risk with Bear Market Probabilities

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