Investment Management Stategy

"Select and Preserve"

Our "Select and Preserve" Investment Management Strategy involves a comprehensive process for selecting a variety of investments, as well as a systematic process that seeks to “protect and preserve” investments during severe market declines. Through the use of various technical analysis tools, we seek to manage risk and concentrate investments in those areas of the market we view as having the highest probabilities of future out performance. This strategy is used for "Bucket Three" of our Retirement Income Strategic Plan. As one approaches retirement, mitigating major investment declines is our major objective.

The Investment "Selection" Process

“Relative Strength” is a strategy that compares a varied of investments to one another for the purpose of detecting which investment is the stronger performer. Our investment tool then quantifies the results of the Relative Strength daily comparison to help us select our view of the most suitable investments within the investment universe for our client's portfolios.

To address the potential for increased volatility and risk in a portfolio, only a portion of the client’s overall portfolio is carved out for inclusion. For aggressive clients (clients with the goal of significant growth), we may carve out up to 40% for inclusion; moderate risk clients may require carve out of 30%; and for conservative clients requiring little growth, no more than 10% is carved out for inclusion. The remaining portfolio is dedicated to “Bucket One” and “Bucket Two”.

“Portfolio Preservation”
A Strategy to Mitigate Market Declines

No investment, including “Relative Strength” is perfect. To help mitigate portfolio risk we employ two “defensive mechanisms”; “Price Alert” and “Investment Trend Alert”.

“Price Alert” is based on the premise that the more an investment is sold, the price decreases. Conversely, the more an investment is purchased, the price increases. We monitor the price fluctuation of investments, and, using this systematic “sell” strategy, strive to maintain a portfolio’s downside at a maximum of approximately 10%.

"Investment Trend Alert" is an additional feature of our "downside preservation strategy" that enables us to monitor recent trends of securities included in client's portfolios. Often a "negative" change in a security's trend may be a signal that indicates the investment is headed downward. Though this alert is not fool-proof, it serves as another mechanism for continuous monitoring of client's portfolios.

There is no assurance that the investment objective of any investment strategy will be attained. An investor trading in stocks according a Point & Figure strategy may incur greater transaction costs than if the investor follows a Buy & Hold strategy. No strategy assures success or protects against loss. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results. All indices are unmanaged and may not be invested into directly.