Daret Capital Management Inc., is an independent Registered Investment Advisor located in Gresham, Oregon, on the outskirts of the east Portland metropolitan area. Our financial asset management combines the latest independent investment research and analysis, and in-house investment screening to help investors achieve their investing and retirement goals.
Why should you consider an independent investment advisor?
Being independent means a clients needs are put first, not the brokers or firms. Full-service brokerage firms require their brokers to meet monthly production quotas which can force them to recommend products or services that generate high fees or commissions, yet may not be in the clients best interest. Being a client of Daret Capital Management means you receive unbiased investment advice. There is no incentive to churn portfolios (excessively buy and sell) to generate commissions. Establishing and investing in long term relationships is much more rewarding and satisfying than closing a sale on the flavor of the month product.
What is investment management?
Asset management determines what types of investments you own in your portfolio, and how much based on your goals, time horizon, risk, volatility and future needs. For example an aggressive investor will be more inclined to own growth stocks while a conservative investor may want to concentrate on larger companies that pay dividends, value stocks, or exchange traded funds (ETF's).
How does portfolio management work?
Combining the latest independent research, selective stock screening, technical analysis and fundamental analysis, investor sentiment indicators, monetary policies, and institutional money flows, helps to determine when and where to invest a clients portfolio.
Bull and bear markets
Stocks, stock sectors and industry groups, real-estate, commodities, bonds, and other assets can experience price moves up (bull market) or down (bear market) that last can last for months or years. Institutional investors such as mutual funds, pensions, and hedge funds account for over eighty percent of the trading volume because they are the main buyers and sellers in the market. By following their actions, an investor can get insight into whether or not it is time to join them if they are buying, or step out of the way if they are selling.
Sectors and industry groups (why they are important to follow)
Usually the stocks, sectors or industry groups that were the biggest percentage gainers or winners in the last bull market usually will not repeat their performance in the new bull market. Instead, new leadership will show up several weeks or months into the new bull market. These new leading sectors or industry groups are where some of the best investment opportunities can be found. Often, it is the stocks that held up the best during the bear market or correction that will lead when the market begins to move higher.
Investor sentiment (using investor greed and fear to your advantage)
History has shown investors become overly optimistic near market tops and very depressed or pessimistic near market bottoms. Over the past century, there have been buying and selling panics in nearly every asset class. The fear of missing out drives investors to buy at the top, the fear of losing everything causes them to sell at the bottom, which is the ideal time to invest. An active portfolio manager can take advantage of these situations for their clients by looking at a variety of short, intermediate and longer term indicators that have been consistent in spotting market tops and bottoms.