Tactical decisions are made utilizing research and evaluation techniques known as “Point & Figure” charting. This analysis seeks to evaluate the supply and demand forces of particular asset classes and ranks the asset classes from strongest to weakest based on relative strength.
We feel asset classes can be ranked similar to the way one might rank sports teams. In the financial markets, a “game” is played each day and it consists of comparing the daily performance of one asset class to another. Likewise, each day we compare asset classes to one another to determine which are the strongest or the weakest.
Richmond Wealth Management firmly believes our tactical portfolio management approach provides a disciplined framework addressing changing market conditions.
One year after the global economy emerged from lockdowns, the economy is running faster than many of us have seen in our lifetimes. This, plus a rise in private savings, low interest rates, and the "visible hand" of multiple government support programs are providing fuel for growth that should intensify the 2021-2022 U.S. economic recovery to its fastest two-year pace since 1965-1966.
Our strategy evaluates the supply and demand forces of asset classes and ranks them from strongest to weakest based on their relative strength score. The ranking process is comprised of the following four steps.
Step One - A roster is established for each asset class.
Step Two - A relative strength calculation is compiled for each member of the roster versus every other member of the evaluation set.
Step Three - The total number of “wins” for each individual member of the asset class is added together to get a composite score. The following asset classes are then ranked strongest to weakest:
Richmond Wealth Management’s investment approach utilizes custom-tailored, actively managed stock portfolios to help clients build, manage and transition wealth.
Our highly disciplined strategy is designed to adapt to changing markets. Client portfolios are managed with a focus on sectors outperforming other sectors and the broad market to seek to deliver superior performance. Strategic and tactical asset allocations include:
Technical analysis is only one form of analysis. Investors should also consider the merits of Fundamental and Quantitative analysis when making investment decisions. 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. Advisory programs are not designed for excessively traded or inactive accounts and may not be suitable for all investors. We need to review your investment objectives, risk tolerance and liquidity needs before we introduce suitable managers/investment programs to you. Please carefully review the Wells Fargo Advisors advisory disclosure document for a full description of our services.
Asset allocation and diversification cannot eliminate the risk of fluctuating prices and uncertain returns nor can they guarantee profit or protect against loss in declining markets.