Current Investment Strategy

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As dictated by our investment philosophy, our strategy is founded upon 1) compounding and 2) alignment with the currently identified secular trend and trend phase in the stock market.

Secular Trend and Phase

Our analysis indicates that we are currently in the middle stage of a secular bear market that began in the year 2000. This type of market environment is extremely poor for stocks from a fundamental perspective, so our investment strategy focuses on asset preservation and incomesss.

Portfolio Asset Allocations

Compounding within the context of the current secular trend type and phase is accomplished by investing primarily in the following asset classes:

  1. Cash: money markets, foreign currencies
  2. Income: US treasuries, high-grade bonds, bond funds
  3. Total Return: funds that seek both income and growth
  4. Precious Metals: physical gold and silver, precious metal producer funds

The current asset allocations of our model portfolio are shown below:

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We maintain a model investment portfolio in which assets are allocated as dictated above, and the PMI Index tracks the holdings and performance of that portfolio over time.