Delta Wealth Adviser

Staying Out of Major Down Markets

The objective of the Delta Wealth Adviser is to help you avoid the wealth destroying effects of major bearish equity periods and capture the rewards of being an investor in bullish equity markets.

We will guide you to invest in stocks during bullish periods and transition 100% out of stocks during bearish periods. 

We are not day traders trying to catch every market wiggle.  When investors focus on very short-term market action, they often only see the volatility and miss the important trends. 

We use intermediate-term and longer-term trends to measure equity risk levels. When risk levels are acceptable, we are bullish.  When risk levels are elevated, we are bearish.

For the intermediate-term indicator, we use a moving average crossover (MAC) model to systematically determine if the market is in a bullish or bearish period.  The MAC model is one of the simplest and oldest trading systems.  Studies have shown that over the past 100 years, MAC model driven trading systems beat buy-and-hold in both absolute and risk-adjusted return. 

Being out of the stock market on bad days is more important for you than being in the market on good days because gains and losses are asymmetric.  A 50% loss requires a 100% gain to get back to even.  For many investors, much of the market’s upward movement is applied to recovering ground lost since the last peak.

Market outcomes do not follow a normal distribution pattern.  Major market drawdowns occur more frequently than what normal distribution would imply.  Over the past twenty years, the U.S. stock market has suffered a significant pullback roughly once every five years on average.

During times of crisis, stocks become extremely correlated to many other asset classes. Portfolio diversification is not providing you with portfolio protection because correlations are not static. The best way to protect your portfolio from falling values is to limit exposure.

The Delta Wealth Adviser seeks to give you a better risk-reward relationship with a focus on downside protection. 

We look forward to getting started on the process of building and protecting wealth with you.

Important Disclosure: Delta Wealth Accelerator forecasts represent personal forecasts of Nick Atkeson and Andrew Houghton and are not an indication of the performance of Delta Investment Management.  Not all forecasts may be as accurate as those in the past.  Investing in securities involves the risk of loss.  Past performance is no guarantee of future results.