Our Process

The focus of our practice is tactically active portfolio management using Dorsey Wright & Associates research and the Envision® planning process. We pursue returns in your portfolio that are in line with your investment objectives while working diligently to reduce the risk in your portfolio. In today's global economic environment, we believe it is imperative to have the ability to quickly adjust to changing economic conditions. It's as true for financial and investment matters as it is for life in general: planning for the future helps you focus on where you're headed and feel confident in where you stand in relation to your goals and intentions. Main Street Wealth Advisors has built a premier investment practice around a deep respect for planning. Our commitment to helping you plan effectively, invest wisely and map a realistic financial course to your future years is at the heart of our process. By blending the human dimension of personal goal-setting with innovative technology, our process goes way beyond simply aiming for a dollar amount or trying to match a performance benchmark. The Envision process offers us the tools and technology needed to discuss your life expectations, decide on an appropriate investment strategy, track your progress and re-sync, or rethink, your approach whenever necessary. Please click here for more information about the Envision planning process.

The Way We Invest

At Main Street Wealth Advisors, our Portfolio Managers use research from Dorsey Wright & Associates to help us manage Tactical Tilt portfolios which are an adaptive suite of risk management solutions for investors. Each strategy has the primary objective of pivoting between pursuing wealth accumulation strategies (i.e. offense or seeking to maximize gains in your portfolio) and wealth preservation strategies (i.e. defense or seeking to reduce the risk in your portfolio) in a timely fashion. The methodology used is rules-based and designed to follow the strongest sector and asset class trends within a broad array of investment options. The research we use that is provided by Dorsey Wright employs its relative strength-based ranking process for each major asset class and each major investment sector within them. The rankings are then used to help our Portfolio Managers construct and manage multi-asset class portfolios tilting toward the strongest of asset classes, but doing so within the guidelines of basic strategic investment boundaries. In this manner, we believe Dorsey Wright's Tactical Tilt methodology can be used within our strategy in seeking to capture powerful investment trends yet mitigate the impact of a bear market in stocks, or a rising trend in interest rates, along the way. Following is the investment objective of the Tactical Tilt methodology:

  • Seeks wealth accumulation during positive performance trends for an asset class through overweighting of offensive options.
  • Seeks wealth preservation in high risk market environments through overweighting of defensive asset classes.
  • Sector rotation within each major asset class is designed to exploit leadership trends and mitigates laggard exposure.
  • Pursues long-term investment returns in excess of strategic asset allocation programs through timely tactical tilts between offense and defense over time.
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At Main Street Wealth Advisors, we focus on the use of Relative Strength1 because we are comfortable with the many ways in which it has been tested and applied as a successful return factor for portfolio managers. Past performance is not a guarantee of future investment results; however, we believe using research conducted by the likes of James O'Shaughnessy is helpful in establishing credibility for the process. O'Shaughnessy gained access to the Compustat database and tested everything that had been purported to work (market capitalization, P/E ratios, price-to-book ratios, price-to-cash flow ratios, price-to-sales ratios, dividend yields, earnings per share, profit margins, return on equity and relative strength) over a long period from 1951 to 1996. He tested them independently and in conjunction with other variables. In summary, he found that there was only one factor included in all of the top 10 performing strategies over time and that factor was Relative Strength. In addition, he pointed out that the worst strategy he tested was the anti-relative strength strategy of bottom fishing (or buying the stocks with the worst trailing performance). 

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1. Relative Strength is a measure of price trends that indicates how a stock is performing relative to other stocks in its industry.

Technical analysis is based on the study of historical price movements and past trend patterns. There is no assurance that these movements or trends can or will be duplicated in the future. Dorsey, Wright & Associates developed the indicators described. They have been prepared without regard to any particular investor's investment objectives, financial situation and needs. Accordingly, investors should not act on any recommendation (express or implied) without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. Any opinions expressed or implied by Dorsey Wright are not necessarily the same as those of Wells Fargo Advisors or its affiliates.

Asset allocation cannot eliminate the risk of fluctuating prices and uncertain returns.

Investments and investment strategies contained herein are provided for informational purposes only. We would need to review your individual situation before recommending appropriate strategies to you. All investing involves risk, including the possible loss of principal.

As each Private Investment Management (PIM®) program account is individually managed, construction and ongoing management of portfolios may vary from those discussed on this website.

Past performance is not indicative of future results, and there is no assurance that any investment strategy will be successful.

The PIM program may not be suitable for all investors. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services. The minimum account size for this program is $50,000.