Tactical Portfolio Management Strategies

Compared to other financial advisory practices who try to implement multiple strategies, Richmond Wealth Management uses one unified investment strategy that helps us to realize portfolio efficiencies while seeking to minimize costs and stay in alignment with your risk tolerance.

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.

Financial Advisor meeting with clients

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.

Dynamic Asset Level Investing Investment Process

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:

    • U.S. Equities
    • International Equities
    • Commodities
    • Fixed Income
    • Foreign currencies
    • Cash
Step Four - Our Investment Portfolio Strategy will overweight (invest more monies) in the top two asset classes.

Relative Strength is a measure of price trends that indicates how a stock is performing relative to other stocks in the 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 in this report. 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) or information in this report without obtaining specific advice from their financial advisors and should not rely on information herein as the primary basis for their investment decisions. 

Asset Allocation Investment Strategies

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:

  • Aggressive Growth
  • Growth
  • Conservative Growth
  • Hedged Growth
  • Conservative Growth & Income
  • Income 
  • Municipal Bond

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.