Daret Capital Management Inc., is an independent Registered Investment Advisor (RIA) in Gresham, Oregon, just east of Portland.
Why should you consider an independent investment advisor?
Independent means your investing interests are put first, not the firms. Full-service brokerage firms often require their brokers to meet monthly dollar production quotas, which can lead to products or services being recommended which generate high fees or commissions, yet may not be in your best interest. Investing in long term relationship with you is much more rewarding and fulfilling than closing a sale that only meets the short term needs of a broker.
What is investment management?
Asset management determines what types of investments you own in your investment portfolio, and how much based on your goals, time horizon, risk tolerance, and comfort with volatility. Growth investors will be more willing to own stocks in smaller, faster growing companies. Conservative investors may want to concentrate on larger companies that have a long history of earnings growth and dividend payments. The methods and strategies used to select and manage investment portfolios combines independent and in-house research, analysis, and investment screening.
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.
Stocks, sectors and industry groups
Usually the stocks, sectors or industry groups that were the biggest percentage gainers or winners in the last bull market will not lead in the new one. 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 and innovative companies can be found.
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. An active portfolio manager can look objectively at these situations by studying the short, intermediate and longer term investor sentiment readings and invest when investors are most fearful, and then be patient.