Instead of the typical “buy and hold” strategies most companies use, in these strategies, we actively manage passive index funds.

The CORE Strategy is comprised of 6 ETFs (3 are U.S. stocks, international stocks, and real estate stockss and the other 3 are bonds, treasuries, and gold). Each month, we run a Relative Strength Analysis on the 6 and they are ranked one through six based upon positive momentum. Clients are always in the top 3. If the third ranked drops to four and four moves up to three, we replace the fund that dropped. The strategy works for clients of all ages and risk, because in up markets the stock funds capture upside returns and in down markets the strategy shifts to bonds, treasuries and gold to help reduce losses. In the case of severe downturns, like 2008, when the S&P 500 Index was down -37%, the Core Strategy was up +1.3% by actively moving to the 3 conservative options.

The SECTOR Strategy adds 3 to 5 additional funds to a client’s account through utilization of the same Relative Strength Analysis on 85 different Exchange Traded Funds (ETFs). Examples of Sector Funds are: Utilities, Oil & Gas, Technology, Health Care, Infrastructure, Clean Energy, Biotechnology, Cloud Computing, and so on. While each fund is diversified into 20-30 different stocks, they are focused on a specific sector of the economy. We invest in funds in the top quartile, which are performing best, and replace them as they fall out of favor. No sector is always in the top quartile, so why should we stay invested in it or guess when they are going up or down, when the analysis provides clear direction?

The WORLD Strategy adds 1 or 2 additional funds to some client accounts, by analyzing 50 different country funds, as well as, 10 different style funds in the U.S. Like the Sector Strategy, the returns from countries around the world (think their version of our S&P 500 Index) can vary greatly. Instead of investing in all of them generically, we can focus on which countries are performing the best.

Reinhold Financial is a boutique firm that customizes each client’s investments based upon their short and long-term goals. The proactive strategies above are layered in with tax-free bonds, CDs, Treasuries, Private Partnerships, and other assets based upon the need for growth or income. The over-arching template is to preserve client wealth (win by not losing) and grow accounts based upon
our up-front discussions on desired return.