The Tripod Strategy or Belmont Ave. Youngstown, OH

Transcription

1 (Bottom L-R: Russ Spitz, Josh Blumental, Top L-R: Scott Murray, Amanda Wood, Dan Betts) The Tripod Strategy or Belmont Ave. Youngstown, OH April 2010

2 Contents 1. Our Mission 2. Our Group 3. Our Tripod Strategy 4. Summary

3 Our Mission The Buckeye Group at Morgan Stanley Smith Barney seeks to provide client-focused wealth management to help preserve, grow and transfer wealth for affluent individuals, businesses and organizations. We provide personalized quality service and professionalism. We will fulfill our mission with integrity and hard work. We strive to build meaningful relationships with our clients and associates while maintaining the highest level of ethics in all our business dealings.

4 Our Group Russell Spitz Vice President Senior Investment Management Specialist Financial Advisor Josh Blumental Second Vice President Financial Advisor Scott Murray Dan Betts, CFP Investment Management Consultant Financial Advisor Registered Marketing Associate

5 Amanda Wood Registered Client Service Associate Our Group cont d

6 Our Tripod Strategy As the name implies, the Tripod Strategy utilizes a three-legged approach to portfolio construction and management. Each leg of the Tripod represents an asset of the marketplace that seeks to demonstrate strong Relative Strength when compared to other assets. On top of the Tripod sits a Camera that views and focuses in on our client's goals, dreams and visions. The Camera is attached or secured on top of the "Tripod". The Tripod's job is to help keep the Camera upright and focused on the Goals, Dreams and Ambitions of our clients. Sometimes, in order to steady the Camera, we will need to do some repairs or replace one of the legs on the Tripod. In other words, it may be necessary from time to time, to change out one or two pieces in one leg of the Tripod. Or, perhaps replace an entire leg, like removing equities and adding to bonds. After all, we don't like blurry or fuzzy pictures, and we want everyone and everything in the frame of the shot.

7 Our Tripod Strategy cont d The Tripod Strategy seeks capital appreciation through investing in securities such as domestic stocks, international stocks, bonds, commodities, currencies and cash. We follow trends of asset classes and market sectors. The principle that makes this strategy comprehensive is based upon the concept of Relative Strength. The objective is to own securities that are showing the potential for or have established a positive price trend or positive relative strength vis-a-vis other assets and cash. Our goal is to acquire and own positions that are gaining strength within the marketplace and are trending higher on an absolute basis. When we observe an asset class maintaining market leadership, we will typically allocate to that area of the capital markets. When we observe a change in trend, we will typically reduce or sell the position in an attempt to lock in profits or reduce our losses. The goal of the Tripod Strategy is to produce absolute returns rather than relative returns based on indexes. Your diversified portfolio may consist of positions that satisfy our Tripod Strategy. We believe investors should be patient. Investor participation of more than two years may be required for this strategy to properly demonstrate the potential for above average results. Finally, this discretionary strategy is not for every investor. It is for investors seeking capital appreciation and an understanding of risk.

8 Tripod Strategy Leg #1 Leg #2 Leg #3 Stocks - Domestic Stocks - Foreign Bonds Cash Currency Commodities Potential Opportunities Model * Rule is to Hold the Two Strongest * Rule is to Buy or Sell vs. Relative Strength Assets. Money Market.

9 The Tripod Strategy Summary Tripod Strategy has rewarded: Intelligence, Discipline and Patience Market Fundamentals we believe: o Security Prices tend to move in short, intermediate and long-term trends. o Asset Classes and Market Sectors tend to move in and out of favor. What we need to know is: o What to Buy o When to Sell, and o Where to reinvest any sell proceeds. Our Strategy: o Reviews Basic Asset Classes and Market Sectors. o Securities are bought on a Buy Signal utilizing Technical Analysis. o Securities are sold on a Sell Signal utilizing Technical Analysis. The three most important elements when investing are: o Disciplined Strategy o Reliable Research o Time and Patience We request a commitment to our Portfolio Strategy for a period of time not less than two years.

10 Morgan Stanley Smith Barney LLC. Member SIPC Bonds are affected by a number of risks, including fluctuations in interest rates, credit risk and prepayment risk. In general, as prevailing interest rates rise, fixed income securities prices will fall. Bonds face credit risk if a decline in an issuer's credit rating, or creditworthiness, causes a bond's price to decline. Finally, bonds can be subject to prepayment risk. When interest rates fall, an issuer may choose to borrow money at a lower interest rate, while paying off its previously issued bonds. As a consequence, underlying bonds will lose the interest payments from the investment and will be forced to reinvest in a market where prevailing interest rates are lower than when the initial investment was made. NOTE: High yield bonds are subject to additional risks such as increased risk of default and greater volatility because of the lower credit quality of the issues. Diversification does not guarantee a profit or protect against a loss. International investing may not be suitable for every investor and is subject to additional risks, including currency fluctuations, political factors, withholding, lack of liquidity, the absence of adequate financial information, and exchange control restrictions impacting foreign issuers. These risks may be magnified in emerging markets. The investments listed may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments, and encourages investors to seek the advice of a financial advisor. The appropriateness of a particular investment will depend upon an investor's individual circumstances and objectives. Please contact your Financial Advisor for a complete listing of all transactions that occurred during the last twelve months. This material does not provide individually tailored investment advice. It has been prepared without regard to the individual financial circumstances and objectives of persons who receive it. The strategies and/or investments discussed in this material may not be suitable for all investors. Morgan Stanley Smith Barney LLC recommends that investors independently evaluate particular investments and strategies, and encourages investors to seek the advice of a Financial Advisor. The appropriateness of a particular investment or strategy will depend on an investor s individual circumstances and objectives. The views expressed herein are those of the author and do not necessarily reflect the views of Morgan Stanley Smith Barney or its affiliates. All opinions are subject to change without notice. Neither the information provided nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. Past performance is no guarantee of future results. Tax laws are complex and subject to change. Morgan Stanley Smith Barney LLC, its affiliates and Morgan Stanley Smith Barney s Financial Advisors do not provide tax or legal advice and are not fiduciaries (under ERISA, the Internal Revenue Code or otherwise) with respect to the services or activities described herein except as otherwise agreed to in writing by Morgan Stanley Smith Barney. This material was not intended or written to be used for the purpose of avoiding tax penalties that may be imposed on the taxpayer. Individuals are urged to consult their tax or legal advisors before establishing a retirement plan and to understand the tax, ERISA and related consequences of any investments made under such plan. Foreign Currencies (Foreign Exchange - FX ) are volatile and involve inherent risks including foreign economic, political, monetary and/or legal factors, changing currency exchange rates, foreign taxes, and differences in financial and accounting and regulatory standards. These risks may be magnified in emerging markets. International investing may not be for everyone. There is no guarantee that these strategies will succeed. This information is intended to illustrate products and services available at Morgan Stanley Smith Barney. The strategies do not necessarily represent the experience of other clients, nor do they indicate future performance. Investment results may vary. The investment strategies presented are not appropriate for every investor. Individual clients should review with their Financial Advisors the terms and conditions and risk involved with specific products or services. Past performance is no guarantee of future results. The information contained in this communication is based on generally available information and, although obtained from sources believed to be reliable, its accuracy and completeness is not guaranteed. The authors of this brochure are not research analysts and the information in this communication is not intended to constitute research as the term is defined by applicable regulations. An investment in alternative investments can be highly illiquid, is speculative and not suitable for all investors. Investing in alternative investments is only intended for experienced and sophisticated investors who are willing to bear the high economic risks associated with such an investment. Investors should carefully review and consider potential risks before investing. Some of these risks may include: loss of all or a substantial portion of the investment due to leveraging, short-selling, or other speculative practices; lack of liquidity in that there may be no secondary market for the fund and none is expected to develop; volatility of returns; restrictions on transferring interests; potential lack of diversification and resulting higher risk due to concentration of trading authority when a single advisor is utilized; absence of information regarding valuations and pricing; complex tax structures and delays in tax reporting; less regulation and higher fees than mutual funds; and manager risk. Individual funds will have specific risks related to their investment programs that will vary from fund to fund. Actual results may vary and past performance is no guarantee of future results.

11 (Bottom L-R: Russ Spitz, Josh Blumental, Top L-R: Scott Murray, Amanda Wood, Dan Betts) 5048 Belmont Ave. Youngstown, OH TELEPHONE: TOLL-FREE: FACSIMILE: