Our Unique Solution
The New Normal
Not only will Demographics will affect future portfolio expectations and requirements for income.What we believe to be the New Normal will be continued and increasing Volatility. In the next ten years markets generally will be increasingly more volatile than the past two decades for three reasons:
Our Unique Investment Solution – Disciplined Investment Strategy
- Globalization, The world is a smaller place than it ever has been and events and consequences affect us all more so than ever.
- Communication is faster than ever. We hear and now actually see events around the world and many of them striking fear into investors as they happen.
- Technology is expanding rapidly, manufacturing is changing over to intellectual property, money moves faster. We saw in 2000 the breaking of the tech bubble, 2008 the housing bubble…these events are felt globally, not just locally.
- Our clients are seeking positive returns with low risk.
- We actively manage client portfolios through disciplined risk management, investment selection, and asset class rotation - a strategy very much different form Buy and Hold!
- A rigorously tested, systematic investment process provides a great deal of comfort for clients during these types of fearful, highly uncertain market environments.
- At times (as in the latter half of 2008), cash may be the only option.
The Relative Strength Solution
- In Our Disciplined Investment Strategy we provide a proven and unbiased view of all the asset classes and their inter-market relationships.
- Our Relative Strength Analysis allows for a clear approach to buy/sell strategy keeping clients out of bad investments and finding outperformance with less risk.
- Portfolio creation and tracking capabilities allow us to construct personalized portfolios and identify strong investments. Our technical analysis focuses on relative strength analysis and risk management.
- Our proprietary Relative Strength methodology uses Point and Figure charting techniques to deliver on our value proposition, measure - Relative Strength Reports, Matrixes and Charts for all asset classes including stocks, bonds, real estate, commodities and currencies and cash.
- Disciplined and daily review of the investments within the portfolio that exhibit strong relative strength remain in the portfolio and those that have deteriorated are replaced.
The portfolio is built by reviewing the entire universe of all securities; foreign and domestic stocks and bonds, real estate, commodities, currencies and cash to create a subset of approximately 300 securities.
Our team then employs a proprietary selection methodology built upon a systematic application of relative strength. The methodology is responsible for evaluating all potential investments, ranking them by means of relative strength, and then selecting and weighting them based upon their relative strength ranking.
At its core, our process is simply designed to identify companies that demonstrate powerful relative strength characteristics against their peers within a very broad inventory of securities.
At times the model may indicate cash or equivalents as the strongest asset class.
We believe this construction process is robust in its ability to identify stable leadership trends, and adaptive in its ability to rotate as market trends themselves change within the various investment categories.
Most importantly our strategy is based upon a disciplined model with defined rules. That is rules for buying, selling and removing the myths of the market and emotional barriers that prevent investors from moving to assets of strength.