Dedicated to growing and protecting your wealth.
This is a behind the scenes investment risk control system designed and managed by our President, Regi Armstrong. It is NOT designed to prevent normal market losses (under 20%). While no strategy can assure a profit or protect from a loss, our strategy is designed (but not guaranteed) to limit significant losses in major bear markets (excess of 30% loss from market peak of S&P 500 to market trough). The basic tenets of the system are:
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When the market is undervalued (using both objective and subjective measures), it takes two components to trigger.
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When the market is fairly valued or overvalued (again using both objective and subjective measures), the system requires only one component to trigger.
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In either case the intent is for us to sell equities and place the proceeds in fixed income in most portfolios when it triggers. There is no guarantee we can do so in a timely manner. For some clients, we may use certain investments that seek to achieve positive returns in a declining market for a portion of the cash allocation.
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When the system triggers to re-invest, we redeploy assets back to the model. There is no guarantee we will time this correctly.
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This system will occasionally give false signals which may affect portfolios adversely.
WealthProtect System
This is a hypothetical graph depicting how the system can work through various market fluctuations. The green shaded areas are when the WealthProtect System should be triggered and indicate to exit equities. This system would not have helped reduce losses in very rapid declines such as the 22% one-day crash in 1987. This is a hypothetical example and is not representative of any specific security or portfolio. Actual results will vary.
