The recent volatility of the market and U.S. financial institutions has been a cause for concern among many investors as the stock market has moved down to its lowest levels since 2005. Markets have proven to be cyclical throughout history and today’s market is no different. Historically, we have seen market lows associated with increased levels of fear and these fear induced downward cycles often present some of the greatest investment opportunities. 

Here at Spectrum, our primary focus is to preserve your investment capital.  You may be asking yourself, “am I positioned correctly or should I redeem or withdrawal funds?”  Spectrum cautions you from acting emotionally.  Spectrum’s Tactical Strategies are designed to take a defensive stance during volatile markets.  Currently, the majority of our strategies are on the sidelines and we anticipate remaining in cash until we believe this market cycle is complete.  Many of our strategies are designed to take advantage of the “next opportunity”, which our clients will not want to miss.  Cash is king but this could change quickly.  Historically, the potential for gains after a major decline is proportionate to the decline.  As an analogy, let’s look at a coiled spring – the tighter the spring is compressed, the greater degree of bounce when released.  We will want our clients to be positioned properly in order to participate as our strategies alert buy signals.

Spectrum Financial Inc.
2940 N. Lynnhaven Road | Suite 200 | Virginia Beach, Virginia 23452
Tel: 757-463-7600

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Behind Our Strategies

Spectrum Financial's investment strategies are based on trend following, momentum, relative strength and seasonal models.

Trend following strategies seek to identify changes in the market's direction soon after the change occurs through a series of technical indicators.

Momentum models seek to identify asset classes that are gaining appreciation faster than other segments of the market with the objective of investing in the fastest growing asset classes.

Relative strength strategies measure how an asset class has performed relative to the overall market and other asset classes.

Seasonal strategies are based on determining specific days of the week, intervals of the month and/or times of the year that are favorable to a rise in the financial markets or specific asset classes.

Regardless of how well an indicator or model has worked in the past, there will be periods of underperformance. This is why we maintain that a well managed portfolio should not only include asset diversification, but also diversification of investment strategies.