Our goal is to increase client net worth, each and every day.  That is our focus and our craft.  Focus on your craft and your business each day, making money in the skill that you practice, investing your savings to grow over time.  Online accounts exist for a significant value.  But for a small price, you can employ an investment professional, monitoring and managing your valuable assets.  Hobby investors are unlikely to take the time to perform extensive research and evaluate new opportunities on a daily basis.  Stockbrokers often pitch a single stock idea, disregarding the big picture of complete portfolio management.  The Internet hosts a universe of ideas on a daily basis.  We pay a significant amount of money each month for research.  We continuously sift through our screens, charts, news and reports, looking for new opportunities for all of our clients.  Take advantage of the time we spend in thoroughly reviewing and researching the markets, sectors, and individual companies.  Employ a specialist whose craft is to actively manage and monitor your valuable assets.  We are the pilot, you are the passenger, and our research tools are the instrumental gauges on our dashboard that provide a variety of readings to evaluate the market engines and to help you reach your investment destination.

With regard to the sector rotation models, relative strength is a key component in identifying potential winners.  Focusing on the stronger relative strength sectors in an effort to be in the leaders and out of the laggards can be best explained through historical returns.  From late March 2000 through early October 2007, the return of the S&P 500 was roughly flat.  If an investor bought into the S&P 500 in late March of 2000, it has taken 7 ½ years for that investor to essentially break even.

Without the use of strategies that tactically manage the portfolio, adapting to changes presented by the market, the “buy and hold” investor essentially stepped onto a rollercoaster at one platform, endured a 7+ year ride of ups and downs, only to arrive back at the same platform with little to show for it.  If that investor was employing a systematic investment strategy, using indicators to identify potential emerging trends and opportunities, he/she may have (for example) gotten out of the Technology sector when it showed signs of weakness.  *From March 2000 to October 2002, the technology sector returned –78%.  On the other hand, the Real Estate sector returned +25% during that same time period.  From Oct 2002 through Dec 2005, the energy sector returned +112%.  In February 2000 through December 2005, large cap stocks returned –7%.  At the same time, small cap stocks returned +68%.

Markets, styles, and sectors rotate in and out of favor.  You must have a logical, disciplined approach to know what is in season, and naturally what is out of season, to produce a healthy and profitable outcome.

The one constant in this business is change, and investors must be willing to adapt to market change rather than fight it.  There is no crystal ball in this business.  But the Dorsey Wright research tools and indicators offer risk barometers and effective ways of finding likely leadership.

*Statistics are derived from Dorsey Wright & Associates

"A man who works with his hands is a laborer; a man who works with his hands and his brain is a craftsman; but a man who works with his hands and his brain and his heart is an artist." Louis Nizer