Market Cycles: What's the Best Way to Navigate Them?

Market Cycles: What's the Best Way to Navigate Them?

June 22, 2017
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It's pretty obvious to most people that markets change.  But if you look at them more closely, they actually cycle in repeating patterns.  These patterns often take months or even years to go through their rotation and come back around.  But if you can recognize the market cycles, you can proactively manage your investments through them.

Navigating Market Cycles    

We begin with the focus of growing your investments while also working to preserve your wealth.  We call this our Advance and Protect philosophy.  Our goal is to maximize market opportunities with as little risk as necessary.  We use a three-prong approach to navigate market cycles:

  1. Fundamental Analysis: We seek to invest in companies that are financially stable.
  2. Valuation Process: We attempt to buy companies that are trading below their historical values.  We like to Buy Low!
  3. Technical Analysis: We attempt to buy and sell securities that the market has either oversold of overbought, using chart analysis to assist in those decisions.

Risk management controls are integral to our Advance and Protect philosophy. Markets are dynamic and change in response to economic and political events.  Our strategy attempts to Advance your portfolio during positive market cycles and Protect your portfolio during negative market cycles.

Proactive Investment Management

The private wealth managers at the Center for Wealth Management continually monitor financial, political, and economic data that impact the markets.  Then, we make those adjustments that are needed to our client's portfolios, tweaking them throughout the market cycle.  

We don't believe in static portfolio allocations or buy and hold strategies.  Portfolios managed in this way may not have the capability to adapt to changing market conditions.  These portfolios will be at the mercy of market volatility. 

A Note on Investing

The strategy discussed here cannot guarantee a profit or ensure against a loss.  stock investing involves risk, including the possible loss of the principal.  Bonds are subject to market and interest rate risk, as well, if sold prior to maturity.  Bond values will decline as interest rates rise and are subject to availability and change in price.

To learn how we can help proactively manage market cycles, call us today at 513-407-5430.