The Strategy: Dynamically Adapting To The Market Environment

In the 1980s and 1990s one approach to investment stressed buying stock and then holding it to capture long term capital appreciation and dividend income. The theory was that the market would fluctuate up and down, but as long as you held on long enough stocks would eventually increase in value. This is a great technique in a very strong market where stocks tend to keep rising and the dips may only be a few weeks or months. However, when the dip could last years you may not have time to continue holding since you may need money to send your children to college or to retire.

Rather than holding stocks blindly or forecasting future asset prices, our approach analyzes the current market environment and adapts to it. We believe that each asset class (e.g., stocks, bonds, cash and cash equivalents) has its own unique market environment that can change dramatically over time. When the environment for stocks is not favorable, then we modify the portfolio to include other asset classes with more favorable environments and therefore maximize the entire portfolio's performance.


* All return calculations were done by WEGENER, LLC. We did not adjust our calculations for taxes or any other potential cost.


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