Our evaluation of the risk/reward relationships in the equity market is based upon five components: market trends, technical factors, interest rates, market fundamentals, and seasonal patterns. When we believe the risk/reward relationships of the stock market are favorable, we invest your portfolio in stock.

 

When we believe the risks of the stock market outweigh the potential rewards, we invest your portfolio in more conservative money market funds, defensive funds, or bond funds until conditions in the equity market improve. David R. Kern Asset Management’s Dynamic Asset Allocation discipline may also be partially invested in the equity market based on relative strength among asset classes.

Relative Strength Fund Selection begins with technical analysis of individual funds and market indexes, to help determine the prevailing themes and trends of the market.

Technical analysis guides us to those sectors or investment styles that we believe have the greatest potential for growth in the current market environment.

After determining the prevailing theme of the market, we then find the funds that are invested in a manner that we believe will perform well in the current market environment. By digging into each fund’s portfolio structure, historical performance, and management philosophy, we select those funds for your portfolio with investment objectives and risk profile that we believe match the profile selected by you.