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Investment Management

Our Fact-Based Investment Process

Our Fact-Based Investing Approach
Here at Blakely Financial Services, we use The Sherman Sheet’s Bull/Bear indicator to determine our market entry and exit points over the long term. We are not always fully invested based on the current market performance. We do not believe in buy, hold, and hope strategies; we change our allocations based on the current facts. We also do not make predictions; we analyze current market trends and invest according to what is happening in the market in the present. Below is a graph that shows the historical record of the Bull/Bear Indicator. The gray sections represent when the indicator is negative and we are out of the market and the white sections represent when the indicator has been positive and we are invested in the market.

*No strategy assures success or protects against loss.

There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.

Investing in mutual funds involves risk, including possible loss of principal.

An investment in Exchange Traded Funds (ETF), structured as a mutual fund or unit investment trust, involves the risk of losing money and should be considered as part of an overall program, not a complete investment program. An investment in ETFs involves additional risks such as not diversified, price volatility, competitive industry pressure, international political and economic developments, possible trading halts, and index tracking errors.


Bull/Bear Indicator Historical Chart



Source: The Sherman Sheet

This indicator lets us know when the market appears to be in a long-term uptrend or downtrend. When the indicator changes, we change the allocation in our portfolios to either raise cash and protect the assets or deploy cash to invest in securities to grow our portfolios.

Every portfolio at Blakely Financial Services is different and customized to our client’s objectives. This is an example of how we generally allocate most growth-oriented portfolios:


CORE
• Small cap, mid cap, and large cap ETFs
• Broad market exposure

Sector Rotation
• Sector rotation strategy ETF
• Every two weeks the ETF buys into the sectors they believe will perform the best

Individual Positions
• Stocks, ETFs, and Mutual Funds
• We use a variety of research sources to pick the individual investment
• Individual client objectives and risk tolerance are always taken into consideration


Disclaimer: The above graph represents Sherman Sheet Bull/Bear indicator results, not actual investment performance or returns. Stock market indices, like the S&P 500 Index, are unmanaged groups of securities considered to be representative of the stock market in general or subsets of the market, and their performance is not reflective of the performance of any specific investment. Investments cannot be made directly into an index. Historical returns are calculated using data provided by sources deemed to be reliable, but no representation or warranty, expressed or implied, is made as to their accuracy, completeness or correctness. This information is provided "as is" without any warranty of any kind. All historical returns data should be considered hypothetical. Past performance is no guarantee of future results. The growth allocation pie chart also is an example of a potential allocation and does not guarantee future investment results.