^{By Todd Stankiewicz | CIO, SYKON Capital | Portfolio Manager, Free Markets ETF (FMKT)}

Investors often focus on advisory fees when evaluating a strategy, but Todd Stankiewicz of SYKON Capital discusses why drawdowns, recovery time, and investor behavior also matter. Here he explains the firm’s fee-only structure and how he thinks about the role dynamic asset allocation may play in an overall portfolio. For historical context on lengthy market recoveries, including a market that took 34 years to recover (Source: Bloomberg), read The Long Road to Recovery.

I think the cost question often gets framed too narrowly. Advisory fees matter, but so do drawdowns, recovery time, taxes, trading costs, and investor behavior. If a portfolio drops 50%, it requires a 100% gain to return to its starting value1. Depending on the market environment, recovery periods can take years. After the Dot Com Bubble Burst, it took more than 10 years for the S&P 500 Index to return to its previous high2. For someone relying on that capital for business needs, retirement, or family spending, the timing of a recovery can be an important planning consideration.

At SYKON Capital, we operate on a fee-only model. We do not earn commissions or receive compensation for product sales. Standard brokerage and transaction-related costs may apply depending on the account and custodian, but our compensation is not tied to how often we trade or to the use of any particular investment product.

When I think about the value of dynamic allocation, I think about more than one variable. It may help support a more active risk-management process, and it can also provide a framework that some clients find easier to stay committed to during volatile periods. Whether that value is worthwhile depends on the investor, their goals, their risk tolerance, and how the strategy fits within their broader financial plan.

^{Past performance is not indicative of future results. This content is for informational purposes only and does not constitute investment advice.}

About Author

Todd Stankiewicz | Chief Investment Officer, SYKON Capital

Todd Stankiewicz is the Chief Investment Officer of SYKON Capital, a fee-based registered investment advisor with offices in Westchester County, NY and Jupiter, FL. He is a recurring guest on Fox Business and the Schwab Network, where he discusses markets, portfolio strategy, and investor behavior. Todd is also the portfolio manager of the Free Markets ETF (FMKT).

Learn more at www.sykoncapital.com


^{Disclosure
Advisory Services offered through SYKON Capital LLC, a registered investment advisor with the U.S. Securities and Exchange Commission. This material is intended for informational purposes only. It should not be construed as legal or tax advice and is not intended to replace the advice of a qualified attorney or tax advisor. The information contained in this presentation has been compiled from third party sources and is believed to be reliable as of the date of this report. Past performance is not indicative of future returns and diversification neither assures a profit nor guarantees against loss in a declining market. Investments involve risk and are not guaranteed.}