Building More Powerful Portfolios Through the Simplicity of Relative Strength
The simplest path to improve portfolio performance versus the markets is to make sure you are invested in assets that are outperforming the markets. Once you have done that, dialing in the risk to suit specific portfolio objectives becomes a whole lot easier. Whether you do it through broad market fund allocations, sector and theme investing or at the individual stock level, incorporating this basic overriding concept of relative strength will add a new level of insight and opportunities; all while evaluating risk through current market structure and relative strength instead of past performance narratives.
Focusing on Strength
Why it Works
Observations of individual common stock returns, 1983-2007:
Takeaway: One out of every five stocks are a money losing investment
Takeaway: Nearly one out of every five stocks is a really bad investment
Takeaway: Most stocks can’t keep up with a diversified index.
Relative Strength Driven Market Analysis
Too often, the investment industry focuses on the newest and most popular narrative to rely on for explanation and often worst portfolio allocation. As times change, so have the narratives and variables that drive them, but the underlying market actions and reactions remain constant. Combining various types of relative strength measures including participation levels, two types of relative price strength measures and relative momentum with unparalleled market segmentation can quickly and simply determine where strength is in the equity markets to guide our Investment decisions. We do the analysis and let the Advisor or Portfolio Manager decide what level to stop at. From the Macro level, through sectors and subsectors, ETFs and all the way down to the individual security level, we can get you there the fastest.
30 Million Data Points
Who We Are
Investment Advisors Determined to Improve Portfolio Performance Through Focus and Simplification
We strive to help professional Investment Advisors and Portfolio Managers quickly and easily find out the true market structure. Our 25+ years of experience as an Investment advisor is why we understand that often there is little time left in the work week to stay on top of markets and trends. And the little time we do have gets chewed up trying to figure out what is really going on through all the financial media fluff. We want to replace this frustrating process with a simple, focused process that focuses on where the strength and weakness lies at every level and without all the noise that usually comes along with it.
Meet The Expert
G. Thomas "Tommy" Lackey Jr. CMT, CFP®, CFS
Market Technician & Financial Advisor