Intermarket Analysis and Asset Allocation

Transcription

1 Intermarket Analysis and Asset Allocation

2 Intermarket Analysis The basic premise of intermarket analysis is that all markets are related. Source: Murphy, John. Intermarket Analysis: Profiting from Global Market Relationships; 2004 w w w. w e a l t h s h i e l d. c o 2

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6 Intermarket Analysis and Cycles Markets are interrelated because they are all expressions of the economic cycle. Relationships between commodities, currencies, bonds, and stocks are historically evident. Rising bond prices have usually led stock market bottoms Commodity prices move inversely to bond prices and usually signal inflationary trends A rising dollar usually moves opposite of commodity prices signaling more deflationary conditions Sectors and Industry groups also demonstrate relationships that are dependent upon the business cycle. Sub asset classes are also linked in ways influenced by the overall business cycle. Big Idea: Intermarket relationships can be exploited within a systematic asset allocation framework. w w w. w e a l t h s h i e l d. c o 6

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16 WealthShield Index w w w. w e a l t h s h i e l d. c o 16

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19 We put investment back into investment advisor

20 Co-Founders Clint Sorensen, CFA, CMT Co-Founder Managing Partner of Emerald Investment Partners, LLC and Co-Founder of WealthShield, Clint has long been dedicated to innovating and accelerating the investment landscape. His unique system leverages proprietary quantitative strategies, by fusing together behavioral finance, fundamental and technical analysis. Before becoming a founding partner of Emerald Investment Partners, Clint was a financial consultant at Gunnet, Best & Sorenson Financial Group of Wells Fargo Advisors. Clint serves on the boards of the Market Technicians Association, Inc. and the CFA Society North Carolina, where he currently serves as President. He earned his bachelor s degree from the University of North Carolina at Chapel Hill Robert Leggett, CFA, CFP, JD Co-Founder, Chief Compliance Officer Robert Leggett is a Chartered Financial Analyst, Certified Financial Planner, and Managing Partner of Emerald Investment, LLC. He is also a co-founder of WealthShield LLC. His career spans more than two decades in business, including extensive work in financial services, legal, tax, real estate and accounting which, together, give him the diverse experience needed to manage and grow wealth in today s marketplace. For more than 15 years, Robert has focused on tapping into the power of passive investments to diversify, reduce expenses and create tax-efficient portfolios. Prior to joining Emerlad, Robert served as the first Vice President of UBS in Raleigh, Vice President of Merrill Lynch in Cary, President/CEO of Leggett Stores in Danville and, first, an attorney at the regional law firm of Mays & Valentine. He earned a Bachelor of Science degree in Business Administration with a concentration in accounting from Emory University, where he graduated summa cum laude. He earned his Juris Doctor from the T.C. Williams School of Law at the University of Richmond. w w w. w e a l t h s h i e l d. c o 20

21 Our Team Michael Hakerem joined WealthShield in 2016 as an Advisor Consultant. As the founder of Empowered Portfolios, LLC, Michael focuses on sharing the experience and comprehensive strategies that his team has used to successfully grow and scale an independent RIA to nearly 100% fee-based, while increasing assets and revenues more than fourfold. His career includes more than 20 years in private wealth management and custom portfolio design, developing award-winning financial technologies for securities research and portfolio management. Michael Hakerem, CFA Advisor Consultant Prior, he was founding principal and CIO at Triangle Securities Wealth Management in Raleigh, Portfolio Manager/Buy-Side Equity Strategist at Wachovia Securities in Richmond, and lead architect of a series of smart decision-support tools to help advisors acquire, retain, and manage high-net-worth investors. He holds a B.B.A. in Finance and Economics from James Madison University. Starting in 2017 as the Director of Research for WealthShield, David Stefanick works closely with executive leadership to help steer the strategic direction of the organization. Prior to joining WealthShield, David was an Investment Analyst for the North Carolina Department of State Treasurer. His work included asset allocation, performance reporting, investment due diligence and supporting senior leadership in investment property compliance. David earned his MBA in Applied Investment Management from the University of North Carolina at Charlotte, during which time he was a Portfolio Management Intern at Emerald Investment Partners. He holds a dual BA from the University of North Carolina at Chapel Hill, with an emphasis on Exercise & Sport Science and Peace, War & Defense. David Stefanick Director of Research David has passed all three levels of the CFA Program, and may be awarded the charter upon completion of the required work experience. Caroline Leggett Director of Marketing w w w. w e a l t h s h i e l d. c o Caroline Leggett joined WealthShield, LLC as Director of Marketing in Before joining the WealthShield, Caroline was an Account Manager and, prior, a Recruiter for Insight Global, an award-winning national staffing company that specializes in the accounting, financial and engineering industries. She has also held roles at the North Carolina Legislature and the London-based nonprofit Standing Together Against Domestic Violence. Throughout these experiences, Caroline focused on tapping into data-driven marketing best practices to drive meaningful, measurable results for her clients and the businesses she supported. She now brings that experience to WealthShield, creating comprehensive marketing, business development and strategic growth initiatives that accelerate engagement and success. Caroline attended the University of North Carolina at Chapel Hill, and holds a bachelor s degree in international studies, political science, and anthropology. She currently lives in Raleigh, NC. 21

22 A Valued Counterpart to Your Business Model A Virtual Chief Investment Officer can provide the money management expertise you need to build the long-term client relationships you want As a third party provider of investment portfolio management, a Virtual CIO supports all clients and their advisors, while also providing a complete operations support staff and investment team. w w w. w e a l t h s h i e l d. c o 22

23 A Virtual CIO Adds to an Advisor s Strengths Overcoming Fiduciary Fatigue Investment Advisors are increasingly navigating and adapting changing regulations such as the recently implemented Department of Labor Fiduciary Rule Time Management Advisors need to maximize their time for business development, client management and service beyond day-to-day portfolio decision making Administrative Help Portfolios also need dedicated administrative support to mitigate execution risk and support operations Specialized Skills Even highly sophisticated investment advisors prefer that alternative asset classes have exposure to external expertise Cutting-edge Technology Advisors are able to leverage the latest technological advancements to revolutionize the client experience, while adding scale and efficiency to their business. Additional Staff Supervision Maintaining an in-house investment staff is a challenging as it is time consuming w w w. w e a l t h s h i e l d. c o 23

24 Discover the WealthShield Advantage Our belief is that investor psychology is the driving force behind markets. We have a unique strategy that is designed to help you grow client wealth at a competitive price while safeguarding against large market declines. Coupled with our unique investment approach, our cutting-edge digital platform gives you the tools necessary to add scale and efficiently grow and market your business. WealthShield is an investment company designed to help entrepreneurial financial advisors succeed. We build the platform around your needs and customize a solution to help you provide the optimal client experience and investment offering. Ultimately, our goal is save you the time you need to focus on what is most important your clients. The methods we employ create a portfolio customized for the unique needs of your clients. w w w. w e a l t h s h i e l d. c o 24

25 Our Services: From discovering your investment philosophy to implementing an intelligent portfolio we have you covered. Investment philosophy discovery Investment policy statement formation Financial planning integration Strategic and dynamic asset allocation Billing Performance reporting Technology consulting and implementation Tax Management Trading/Rebalancing Team development and training Security selection Concentrated positions Investment committee formation Content development and marketing support Automated investment management solutions Direct access to portfolio managers and strategists Personalized portfolio management for each individual client or household Risk-managed strategies for both up and down markets Manager search, due diligence, and monitoring Ongoing client portfolio reviews Custom benchmarking Private-label model creation Investment system design and testing Portfolio reviews and stress-testing w w w. w e a l t h s h i e l d. c o 25

26 Virtual CIO Advisor FAQ Q: Will I lose control of my investment strategy if I outsource? A: No. Our process gives you full autonomy over the investment philosophy you want to implement. Q: Will outsourcing minimize the role I play in the investment of my clients portfolios? A: No. Outsourcing allows you to use your time more strategically to focus solely on your clients and their wealth accumulation. The Virtual CIO simply manages the middle office support and day to day investment tasks. Q: Are investment offerings the only service I can expect my Virtual CIO to provide? A: No. WealthShield acts as a collaborative partner to your organization by extending beyond investment management into other departments such as compliance, and marketing. Q: What type of due diligence is required when choosing a Virtual CIO? A: Your assessment checklist should include the firms ability to customize, the breadth of its capabilities, a deep understanding of risk management, as well as cultural alignment. There is no one size fits all approach. Q: I am satisfied with my current investment team, why would I want to use a Virtual CIO? A: The Virtual CIO services offer an additional layer of support for your investment team to better manage risk, facilitate faster implementation decisions, and increase your portfolio returns. In addition, this extra layer of support provides your firm with increased fiduciary oversight, streamlined implementation, customized solutions, and a wide-range of middle office support resources. w w w. w e a l t h s h i e l d. c o 26

27 Invest to Prosper Stop fearing market declines and start managing your clients' investments more effectively. The strategies presented in this book will help you control behavior during volatile markets, the most important determinant of long-term success. We provide a straightforward-but revolutionary-guide for asset allocation. With the help of the approach presented, you can start providing a unique investment discipline built for any market. Buy your copy today! w w w. w e a l t h s h i e l d. c o 27

28 Get in Touch Questions? Please don t hesitate to reach out our team is eager to hear from you! WealthShield, LLC WealthShield 1225 Crescent Green Suite 210 Cary, NC w w w. w e a l t h s h i e l d. c o 28

29 Disclosure

30 Disclosure The material has been prepared or is distributed solely for information purposes and is not a solicitation or an offer to buy any security or instrument or to participate in any trading strategy. Additional information is available upon request. Past performance cannot guarantee future results. All Charts were derived from the following data sources: Global Financial Data, Standard and Poors, St Louis Federal Reserve, and Stockcharts.com Technical analysis is only one form of analysis. Investors should also consider the merits of Fundamental and Quantitative analysis when making investment decisions. The S&P 500 is not an investable index and is a product of Standard and Poors, a McGraw-Hill Company. Investing in fixed income securities involves certain risks such as market risk if sold prior to maturity and credit risk especially if investing in high-yield bonds, which have lower ratings and are subject to volatility. All fixed income investments may be worth less than original cost upon redemption or maturity. Stocks offer long-term growth potential, but may fluctuate more and provide less current income than other investments. An investment in the stock market should be made with an understanding of risks associated with common stocks, including market fluctuations. While stocks generally have a greater potential return than government bonds and treasury bills, they involve a higher degree of risk. Government bonds and treasury bills, unlike stocks, are guaranteed as to payment of principal and interest by the US Government if held to maturity. Dividends are not guaranteed and are subject to change or elimination Investing in foreign securities presents certain risks not associated with domestic investments, such as currency fluctuation, political and economic instability, and different accounting standards. This may result in greater share price volatility. These risks are heightened in emerging markets. Asset-backed securities: Generally, when interest rates decline, prepayments accelerate beyond initial pricing assumptions which could cause the average life and expected maturity of the securities to shorten. Conversely when interest rates rise, prepayments slow down beyond the initial pricing assumptions and cause the average life and expected maturity of the securities to extend and the market value. HYPOTHETICAL PERFORMANCE RESULTS HAVE MANY INHERENT LIMITATIONS, SOME OF WHICH ARE DESCRIBED BELOW. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN. IN FACT, THERE ARE FREQUENTLY SHARP DIFFERENCES BETWEEN HYPOTHETICAL PERFORMANCE RESULTS AND THE ACTUAL RESULTS SUBSEQUENTLY ACHIEVED BY ANY PARTICULAR TRADING PROGRAM. ONE OF THE LIMITATIONS OF HYPOTHETICAL PERFORMANCE RESULTS IS THAT THEY ARE GENERALLY PREPARED WITH THE BENEFIT OF HINDSIGHT. IN ADDITION, HYPOTHETICAL TRADING DOES NOT INVOLVE FINANCIAL RISK, AND NO HYPOTHETICAL TRADING RECORD CAN COMPLETELY ACCOUNT FOR THE IMPACT OF FINANCIAL RISK IN ACTUAL TRADING. FOR EXAMPLE, THE ABILITY TO WITHSTAND LOSSES OR ADHERE TO A PARTICULAR TRADING PROGRAM IN SPITE OF TRADING LOSSES ARE MATERIAL POINTS WHICH CAN ALSO ADVERSELY AFFECT ACTUAL TRADING RESULTS. THERE ARE NUMEROUS OTHER FACTORS RELATED TO THE MARKETS IN GENERAL OR TO THE IMPLEMENTATION OF ANY SPECIFIC TRADING PROGRAM WHICH CANNOT BE FULLY ACCOUNTED FOR IN THE PREPARATION OF HYPOTHETICAL PERFORMANCE RESULTS AND ALL OF WHICH CAN ADVERSELY AFFECT ACTUAL TRADING RESULTS. PAST RESULTS DO NOT GUARANTEE FUTURE RETURNS HYPOTHETICAL PERFORMANCE FOR ILLUSTRATION PURPOSES ONLY. w w w. w e a l t h s h i e l d. c o 30

31 Questions?