An investment philosophy for all markets

Our investment philosophy centers on strategies for protecting and advancing our clients’ interests by conducting extensive research, diversifying broadly, and employing alternative investments where appropriate. We believe that there is always a bull market somewhere, and we seek out investments across markets, asset classes and investment styles.

In contrast to the conventional “buy, hold and hope” approach, we develop proactive strategies and adjust investments to reflect market conditions, taking advantage of potential opportunities and looking for ways to manage risk.

  • For more than 50 years, the financial services industry has adhered to modern portfolio theory, specifically using diversification and asset allocation to manage risk. While these strategies have worked well over time, there is no question that they sometimes fail to minimize risks, particularly in very volatile markets.
  • During broad-based market downturns, asset class performance often converges, so that even diversified portfolios may experience significant losses.
  • At Covenant Wealth Strategies, we believe that, under certain conditions, investors should be postured defensively, even moving substantially to cash and other defensive strategies in order to attempt to protect against losses.
  • In addition to our fundamental research into each investment choice, we incorporate technical analysis of market and pricing trends to attempt to identify these periods and position client portfolios conservatively when appropriate.
  • We believe that both fundamental and technical analyses offer valuable insight into past, current and future market movements. Neither discipline is always correct, yet both types of analysis can provide important insights and information. Moreover, they can reinforce each other. When both fundamental and technical analyses point to the same outcome, we can be more confident about a potentially emerging trend.

The strategies discussed cannot guarantee a profit or ensure against a loss.