Investment Strategy

Our philosophy, the combination of fundamental analysis with technical analysis, can help stack the odds in your favor. It’s like a musician playing the piano. Restrict him to playing the piano with one hand the music he makes is going to be marginal at best. Let him play the piano with both hands, fundamentals and technicals, and he will make beautiful music. Fundamentals can help answer the question of WHAT to buy and technicals answer the question of WHEN to buy.

We use our primary market indicators to get a measure of overall risk. With the assistance of Dorsey Wright, we  use technical market indicators that have been in existence for over forty years to ascertain the overall risk in the market -- to determine whether offense or defense is dictated. We then analyze our broad industry sectors to determine which sector or sectors have good field position. Industry sectors can move in and out of season just like produce in the supermarket. We then select individual stocks that have positive relative strength and have a good probability of outperforming the market. In other words, demand is in control.

Ascertain Market Risk > Determine Offensive Sectors > Fundamentals > Manage the Trade with the Point & Figure Chart