The DEGP IS MY FAVORITE EQUITY STRATEGY FOR — USE IN A MODERATE RISK IRA ACCOUNT.

 

• The Results Are Extraordinary from 2007- 2015.
• No Down Years from 2007-2014. ( Even in 2008. )
• The Maximum Draw Down from the Highest High to the Lowest Low Has Been -16.92%.
• Recovery Time to New Highs Has Been a Maximum of 5.4 Months.

 

Compare The Stats to Your Own Equity Portfolio, Mutual Fund or Index Funds. Of course past performance is no guaranty of future results. Accounts may have losses instead of gains in the future. Check out the audited report and all the disclosures to more fully understand the nature of this account.

The reason I like it so much is because of its daily asset risk control and its method of reducing risk in declining market conditions.

Let’s look at what this manager is doing that sets him apart from most mutual funds and other types of managed accounts:

1. The portfolio is focused on stocks in leading sectors that have high earnings growth and may be purchased at a value based price.
2. The portfolio is intended to be fully invested with a maximum of twenty stocks.
3. Each stock must rise 10% before purchase.
4. Most of the stocks are large cap and pay dividends.
5. The portfolio often includes international as well as domestic equities.
6. Analytics target a minimum of a 30% growth in value prior to purchasing a stock.
7. Each stock is monitored daily. If it declines by 15% it is sold.
8. As a portfolio stock approaches the 30% target the sell trigger is lowered to as low as 5% below the current price.
9. The portfolio holds cash balances when stocks cannot be found that meet the defined standards necessary for purchase.

The results show that this logic and discipline have had great value.

In today’s slow growth environment a portfolio concentrated on high earning companies with a plan for risk control has an advantage over index funds and highly diversified mutual funds.

You may read more more about the DEGP and it’s manager Dr. Robert Schreiber by reading blogs at https://retirementadvice.us. For a comprehensive analysis of the audited results send me an e-mail request at rkmann@aol.com.

It is possible to modify the risk by using the stocks selected by Dr Schreiber and writing options on the portfolio. It can be done using covered calls or option spreads.

Many of the selected stocks have powerful moves on the date of their earnings releases. In a slow growth market these periods of price acceleration may be a good time to take short term gains.

What are the negatives?

Active management may result in more short term gains and thus a higher tax rate. The cost of commissions and slippage also will be greater. We recommend using the lowest cost brokers who do not give trades to traders in exchange for kickback commissions. We also recommend using this strategy in an IRA or Roth IRA.

Capital Markets IQ will provide the trading signals to Advisors and Hedge funds in exchange for a 50 basis point annual fee or share it’s fee with  fully disclosed advisors who refer accounts.

As an advisor I pay fees to Capital MarketsIQ for accounts I manage using their strategy. I also receive compensation for marketing this strategy to other advisors and hedge funds based on fees paid by them to Capital Markets IQ. Capital MarketsIQ is an SEC registered investment advisor.

I depend on investors like yourself to help me spread the word about this very specialized strategy.

What can we do for you that your broker, advisor or financial planner is unlikely to be able to do for you?

1. Risk Management
2. Lower Your Costs
3. Improve Your Tax Efficiency

• Employ daily risk management on each of your securities and screen your new ideas to use a risk profile of 5 units of return for 1 unit of risk.
• Lower your cost of commissions, fees and hidden costs.
• Reduce your taxes as part of your management strategy

In order to understand and quantify the value of these items, make an appointment with me for an initial consultation and portfolio review.

Click on make an appointment with Bob or call me at 860-963-0722. You will be surprised at what is involved in true risk management. Casinos, Banks, trading firms, hedge funds, and bond management firms all have risk management professionals monitoring their daily risk on their assets, not necessary their customer’s assets.

If you have $500,000 or more in investable assets you should consider employing risk management as well.

This stock is an example. A base period started in August 2010 at a low of 3.67. The subsequent high of the base has been 7.57 in 2011 and more recently 7.18 in 2013. The opportunity is to buy as close as possible to the low and sell near the high. Thus if you could buy in the $4.00 area or less and sell in the 7.30 area, you would earn 82.5%. It is possible that you could repeat this trade again and again.

This is a simple strategy that has worked for many years over and over again.

What about the risks?

There definitely are risks. Stocks may breakdown and even go out of business.

How can you mitigate the risks?

• Select stocks with limited debt. Make sure current assets are significantly greater than current liabilities. Eliminate companies under investigation or defending sizeable law suits.

• Select stocks with a long base period of at least 11 quarters. The study, Non Random Profits reported that since 1936 there have been very few stocks with an eleven quarter base that did not increase in price.

• Diversify, do not put too much capital in any one stock.

• Use risk control. If the stock declines 15% below the low of the base, SELL and buy back again at 50% below the low of the base.

• If you find a number of channeling stocks in the same industry group, your odds of success based on prior history is very high.

Make sure the risk reward ratio is appropriate. Measure the amount of loss you might incur if the stock declines 15% below the low of the base. Compare this amount to the amount you would gain if you sold near the high of the base. Your risk to reward ratio should be 1 unit of risk to 5 units of reward.

This strategy requires a great deal of patience to wait for the right buy price and to wait for the appropriate sell price.

I am writing to you about this today because the stock market is nearly fully priced. It is likely opportunities will be available to buy channeling stocks at the right price when the market is under selling pressure. This strategy has worked over a long period of time in bull and bear markets alike.

If you have not already read Non Random Profits, you can learn a lot more about cycles in stocks, industry sectors and market indexes.

In fact the profit opportunity discussed in this article is only a part of the much greater longer term opportunity in these stocks.

If you use stocks which trade for a higher price you may be able to sell put options with a strike price at or below the low of the base. This way you collect an immediate income. If the put is exercised you buy the stock at the right price, without using up your patience. If the stock never gets down to your price you simply keep the income. This way you get paid immediately and your strategy is in effect right away.

This is not personal advice. Please consider the suitability of these ideas for your own particular use. All equity investments involve risk. Past performance is no guarantee of future return.

Let me know if you would like to discuss your ideas or if you would like more information on any areas discussed here. You may call me at 860-963-0722 or click on the red button and make an on line appointment.

Investors who invest in real estate know that you make your money when you buy, because buying low is the key. Location, location, location is the second key. Real estate professionals know how to appraise properties.

Stocks, bonds, mutual funds, and market indexes operate similarly, but individual investors have not been educated to buy low.

I am a stock market cycles expert and I specialize in helping my clients buy low. Before you can attempt to buy low you need to define what low is. As stocks rise in an uptrend it is just like real estate that is in demand. The definition of low changes. Generally when you buy really low in a long term base or channel it takes a longer time before demand increases and an uptrend begins. Securities bought at the low end of a rising channel do not take very long to experience an increase in demand.

If you wish to connect with me on an on line Go to Meeting connection, I can show you visually how effective buying low can be and how accurate and timely it can be.

The main element is to buy close to an inflection point so that the risk you take can be less than a fifth of the potential opportunity.

To take advantage of these opportunities you must be set up to act immediately when opportunity presents itself. Missing the opportunity point by even a day or two dramatically changes the risk vrs. Reward profile.

If you can be profitable more than 80% of the time long term with this risk reward ratio you will in fact create wealth over the long term. This is the core reasoning behind my investment logic. Read the free three chapters of Non Random Profits. Go to a non affiliated website: www.elevenquarterstocks.com, Look at what others have to say at www.nonrandomprofits.info

I have a tremendous amount of data to support my conclusion on this matter. I look forward to sharing it with you. This kind of investment discipline is rare among advisors and managers.

I believe learning about it and implementing it can change your life.