Investment Philosophy
Our Investment Philosophy Blends Unbiased Research and Rich Experience.
One thing for certain – markets and investments will rise and fall. We customize a risk-managed portfolio for you – across asset classes.
By actively managing your portfolio, we make tactical adjustments to allocations to attempt to preserve your assets.
Most investors are too focused on major indices and especially the daily voices of pundits. So where’s the real intelligence? Who knows what will happen? And when? Our answer is this:
Market indices are top-line barometers and don’t always correlate with clients’ real portfolio performance. We prefer to examine how each client’s portfolio has helped achieve personal financial goals. We take pride in how clients have prospered and wealth has been preserved.*
How do we invest clients’ assets? By making tactical decisions with proprietary research and evaluation techniques. This type of analysis attempts to evaluate the supply-and-demand forces of particular asset classes such as domestic equities, international equities, bonds, currencies, commodities and cash – ranking the asset classes from strongest to weakest, based upon “relative strength.”
*There is no assurance that any investment plan will be successful. Investing involves risk including the potential loss of capital.
“Our ear is to the rail.” We listen closely to market signals – and ignore the noise.
Relative Strength
“Relative strength” helps cast aside “losers” and stick with “winners.” *
We do this to see where the money is actually going. Which asset classes are in favor? Which sectors within those classes are moving – and in which direction? Rather than “time” markets or aim for stocks that “may have potential,” we scrutinize hundreds of scientific data points – or tactical indicators.
“Relative strength” is the foundation of our portfolio construction and risk management process. In any market, this unbiased technique helps us identify (in real time):
- How one asset class is performing relative to the broad market and its peers.
- The strongest and weakest performing investments.
- The signals that tend to be long-term – we attempt to help investors enjoy the benefit of “a run” and avoid sustained downturns.*
Did you know?
“Relative Strength Leaders” typically outperform when markets rise – and underperform (to a lesser degree) during market declines.*
*There is no assurance that any investment plan will be successful. Investing involves risk including the potential loss of capital.
Real time vs. “some of the time.”
No market analyst is always correct. That’s why we monitor the daily battles of supply and demand, relative strength, and make multiple comparisons simultaneously (i.e. growth vs. value, large cap equities vs. small cap equities, etc.). This way, client portfolios can be aligned with the strongest asset classes and investments.
While many financial advisors still tout a “buy and hold” strategy – and most mutual fund investments directly track market movements we believe the unpredictable volatility of correlated marketplaces makes that philosophy obsolete. Also, rather than utilize investments from outside managers who are mandated by prospectus to be “fully invested in the market at all times” (keeping your money at risk at all times), we prefer those who can be “in cash” at any time.
- Our total planning approach offers a life and legacy roadmap for clients and their families.
- Our strategies and solutions are objective. We craft our recommendations around two factors – the latest data and the latest input from clients. Period.
- Investment recommendations may include the “not-so-expected.” Why? Because years of global experience teach us that sound investment planning – however conservative – should include both.
Did you know?
Our Value Proposition: We are compensated to maintain the investment plan we create for you – and to handle it on a discretionary basis. To relieve you of watching market gyrations, we are paid a percentage of the value of your assets. This gives us a personal stake in your investment success. This and other examples of our team’s transparency exemplify the straightforward and open nature of our client relationships (something that is especially appreciated by those who’ve “lived” in the investment world).
We Are Technical
We are technical, guided by fundamentals and never emotional. We are market-driven and proactive.
At Schmidt Wealth Management & Associates, we are proud of our independence and reputation for integrity. Seasoned and objective, each team member is committed to putting our clients’ interests above all else.
Our investment acumen as part of our holistic wealth management approach, we serve the diverse requirements of retirees, corporate executives, small business owners, physicians, accountants, attorneys, former financial advisors and multiple generations. We are well aware that preserving and protecting client wealth require diligence and focus.
Investing “alongside clients” in some of the same portfolios – with identical pricing – is one example of our transparency. This exemplifies the straightforward and open nature of the client relationships we’ve built.
We believe our track record of performing in all market conditions – especially market declines – has helped contribute to the affluence and confidence of individuals who’ve been clients for decades.*
*Past performance may not be indicative of future results. Investing involves risk including the possible loss of capital.
“We are privileged to serve those who appreciate our wisdom, common sense, disciplined investment strategies and highly personal attention from an experienced wealth management team.”
Jim Schmidt