Our Investment Discipline. A walkthrough of the investment discipline guiding portfolio decisions when conditions change — and how a structured, rules-based approach is designed to handle what unstructured strategies can’t. This brochure explains discipline. Not performance or predictions.
Why Investment Discipline Matters
Most investors expect markets to move. What surprises them isn’t volatility — it’s how unsettled volatility makes them feel when the path forward isn’t clear. That feeling almost always traces back to two things. First, uncertainty about how the portfolio is designed to respond when conditions change. Second, an unspoken anxiety about deep losses — and what it would actually take to recover from them.
The second one is where most investors don’t have an accurate picture. Losses and recoveries aren’t symmetrical.
The Asymmetry of Losses and Recoveries
a doubling required just to break even
A 25% loss requires a 33% gain to break even. A 50% loss requires the portfolio to double. That gap is what makes deep drawdowns so consequential — not just for what they cost in the moment, but for the recovery they demand afterward.
Investment discipline is what addresses both anxieties. It defines how the portfolio is designed to respond when conditions change, and it’s structured specifically to manage drawdowns before they become difficult to recover from.
This brochure exists to answer one question: Do I clearly understand how my investments are managed when conditions change?
What Discipline Is, and Isn’t
When markets fall sharply, a portfolio without a defined discipline becomes a guessing game. Three questions almost always surface — usually at the worst possible time, and usually without a clear answer: “Do we wait?” “Do we sell?” “Do we change course?”
A defined discipline answers those questions before the moment arrives. It exists in writing, applies consistently across conditions, and produces decisions that don’t depend on the mood of the person making them. It defines how risk is evaluated, how exposure may change as conditions shift, and how decisions can be made with structure instead of emotion. In simple terms, it answers two questions in advance: when risk rises, what do we do — and why? When conditions improve, how do we re-engage — and why?
Discipline Is
- Clarity about how decisions are made
- A defined response to changing conditions
- Consistency through every market environment
- A way to manage drawdowns before they become deep
Discipline Is Not
- Day trading or frequent activity
- Predicting market tops or bottoms
- A guarantee of better performance
- An attempt to avoid risk altogether
Discipline is about clarity, consistency, and structure — and for many investors, it’s specifically designed to soften the impact of deep drawdowns that would otherwise create long, stressful recoveries.
How the Discipline Actually Works
A well-designed portfolio has two jobs that pull in opposite directions: participate when conditions support growth, and protect when risk begins to rise. The challenge isn’t recognizing those goals — it’s knowing when to shift emphasis between them. A defined discipline answers that question in advance. Rather than reacting to headlines or relying on judgment in the moment, ASWTI uses an algorithmic, rules-based system to interpret market conditions and govern how the portfolio is positioned.
Trends are healthy. The portfolio is positioned to capture market growth.
Risk may be rising. Exposure is adjusted thoughtfully, not all at once.
Risk has elevated. Exposure is reduced to defend against deep drawdowns.
These are interpretations of what the market is doing — not predictions of what it will do.
The framework is designed to reduce exposure during periods of elevated risk and re-engage as conditions improve. The goal isn’t to avoid every loss — it’s to manage drawdowns before they become deep enough to require long, stressful recoveries. When portfolio behavior is defined in advance, decisions become calmer, expectations become clearer, and the experience of investing becomes something you can plan around — not something you brace for.
25 Years, Two Approaches
Two portfolios over 25 years of actual market conditions. Both use the same core 60/40 structure. The difference is how each one responds when conditions change — one stays static, one is guided by the rules-based discipline described above. The full illustration, with the market-environment bands across all 25 years, is in the downloadable brochure.
Risk and Return Metrics
Backtested data from 1/1/2000 through 12/31/2024.
| Metric | Annotation | Static 60/40 | 60/40 With A&O |
|---|---|---|---|
| long-term annual growth | 6.72% | 9.29% | |
| largest peak-to-trough decline | -34.99% | -27.63% | |
| sensitivity to market movements | 1.00 | 0.93 | |
| volatility | 11.46% | 11.17% | |
| the value the discipline added beyond the market | 0.00 | 2.94 | |
| return per unit of risk | 0.42 | 0.66 |
After 25 years across multiple market cycles, which experience would you rather have lived through?
What Changes for You
Most investors don’t actually want the highest possible return. They want three things — and most of them already know it, even if it’s not how they’ve been taught to think about investing. A structured discipline is built around those three things, not around chasing the maximum number on a spreadsheet.
A 50% loss requires the portfolio to double just to break even. Smaller drawdowns mean shorter climbs back — and less time spent recovering instead of compounding.
The number on the statement matters less than how you felt watching it move. A steadier path is easier to live with than a higher peak with sharper drops.
When the portfolio behaves as expected, the urge to react to news fades. You stop hoping markets cooperate and start trusting that the framework will respond.
What the Discipline Felt Like, in Practice
A No-Pressure Conversation
The strongest test of investment discipline isn’t a brochure. It’s a conversation about your specific situation — your goals, your concerns, the questions this document raised that you’d like to think through with someone. If you’d like to do that, a brief call is the easiest way. Thirty to forty-five minutes. No presentation, no pitch, no obligation afterward. Just a working conversation about whether the discipline described here might be a fit for what you’re looking for.
What we’d cover:
- Your specific questions and priorities. What this brochure raised. What it didn’t address.
- The discipline in plain English. How the / caution / framework actually behaves in your situation.
- The data and rules behind the chart. How the framework arrives at its decisions, with the actual signals it uses.
- Whether this is right for you. Honestly. If it’s not, we’ll say so.
You don’t need to predict markets to feel confident. You need a plan you understand.
Briggs Financial Group · (810) 522-6685 · info@bfgwealthadvisors.com · www.bfgwealthadvisors.com
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As fiduciaries, we make every effort to ensure the accuracy of the content and data provided herein. Information has been developed from sources believed to be reliable; however, accuracy cannot be guaranteed. Nothing contained in this material should be construed as tax, legal, or individualized financial advice. Please consult with a qualified tax, financial, or legal professional regarding your specific circumstances.
The content and examples presented are intended solely for educational purposes and to promote awareness of strategies such as risk-on/risk-off approaches and tax mitigation within retirement planning. Any competitive analysis of fixed insurance products is general in nature and does not address an individual’s unique situation. This information should not serve as the basis for investment or tax decisions, nor should it be considered a solicitation to purchase any product.
All numerical information, charts, graphs, and scenarios are hypothetical and for illustrative purposes only. Product features, caps, and rates may vary by carrier and are subject to change without notice. Please review official carrier-compliant illustrations with your advisor before investing.
Briggs Financial Group Wealth Advisors (“BFG Wealth Advisors”) provides analysis and support on fixed insurance products offered by over 70 insurance carriers. BFG Insurance Designers is a separate division of BFG Wealth Advisors.
Asset Management and Investment Advisory Services are provided by Investment Advisor Representatives doing business as Briggs Financial Group through Caitlin John, LLC, a Registered Investment Advisor. Briggs Financial Group Wealth Advisors, LLC and Caitlin John, LLC are separate entities and not affiliated.