Investment Philosophy

It has been said before that to build wealth requires patience, a long-term time horizon, and realistic expectations. We believe that is all well and good, but throw in market analysis to help protect from large market declines, research intelligence to help improve investment selection, and use cash as an asset class; now you have our attention.

Business people shaking hands, finishing up a meeting

Through market research, we work to protect our profit gains in our portfolio and work to protect against market declines. By striving to limit the depth of market losses (or drawdown) we believe we are able to chart a more comfortable course to long-term wealth. Our investing principles remove the emotion from the buying and selling process by having a defined objective. Our goal is to protect you on the downside- and improve your upside potential.

We believe the stock market is full of inefficiencies. It tends to get too high when greed is in the air and too low when fear has taken over. Market cycles have been and always will be a key to maximizing growth in the investing world.(1) We focus our research on a number of market and economic cycles which provide us with targeted insight and improve our odds for success. We have a two-pronged approach to investing.

First, each quarter we choose to invest in the market based on our in-house research utilizing the principles of sector rotation, technical analysis, consumer sentiment, and economic cycles. Second, we protect our investments by looking for opportunities to sell for a profit or to protect from a volatile market downturn. By understanding these cycles, we believe the choices we make improve our odds of success for achieving our client’s financial goals.

The impact of a bear market on a stock portfolio can become emotionally draining and devastating to investors. Some investors never recover from these losses and others take years to get their money back. True Wealth & Company works to preserve investments during periods of high market risk by allocating investments into bonds, real estate, and money market funds. The percentage of money invested in stocks may vary widely depending upon the discretion of our portfolio management team.

(1) The Practical Applicationof Behavorial Finance July 2, 2013 By Mitchell D. Eichen and John M. Longo

Investment Overview

Growth with Preservation of Capital. It is the number one goal for many of our clients. At True Wealth & Company, we focus our in-house research to provide specific strategies investors can choose to invest. We find the majority of investors we work with are able to pursue and achieve their financial goals following a growth with preservation of capital strategy.

Income with Preservation of Capital.For those clients who want to remain mostly out of the stock markets, we have developed an income based strategy where preservation is valued over growth.

Maximum Growth. Developed specifically for investors with a larger risk appetite. We have specialized strategies where growth or maximum growth is the primary financial goal desired.