SGS Investment Methodology
Sterling Global Strategies was created to provide investment options that may significantly reduce downside risk, with the ultimate goal of attempting to produce positive returns every calendar year. All of our tactical strategies are managed using a proprietary algorithm which consists of a risk management overlay that can invest 100% of assets in cash during broad market declines.
Sterling Global Strategies is a strong believer that high alpha may be best achieved through asset class trend analysis coupled with having the ability to invest 100% of capital in cash. SGS utilizes cash as an asset class so that it may limit downside exposure, but as with any equity investment, our strategies may experience short term market volatility and possible loss of principal. Therefore, our strategies are intended for long-term investors.
Sterling Global Strategies’ intermediate-term trend analysis helps indicate which asset classes may be entrenched in extended bull markets and which may be experiencing bear markets. The data is then further evaluated to eliminate the asset classes predicted to be declining, and then to overweight investing in those asset classes that display an upward trend. Once these asset classes are determined, our portfolios are constructed by investing in the corresponding class of exchange traded funds (ETFs) and/or mutual funds.
“Creating Wealth by Preserving Capital” is a description of our investment methodology and the stated goal of Sterling Global Strategies. What makes SGS unique is our process that includes cash as an asset class. It is our belief conceptually that by limiting downside losses during bear markets, outperformance over full market cycles are more likely. This in no way suggests that investors will not lose money. The strategies invest in ETF’s and the underlying ETF holdings can be highly volatile. However, changes to our allocations are updated on a monthly basis allowing the strategies to rotate into the asset classes exhibiting the most strength.
There may be periods when our strategies are in cash and the broad market reverses course and moves higher. This will generally only take place during market corrections. During true bear markets our strategies are designed to go to cash. Investors should not assume this happens immediately. Investors can lose money during the beginning stages of bear markets. It is our stated goal to preserve as much capital as possible during bear markets, as we believe preserving capital is the most important function of creating wealth. It also should not be assumed that we will reenter the markets at the very bottom. Our strategies are designed to follow intermediate market trends and therefore we will never reenter the markets at the lowest point.
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|07/01/2014||ALPS and SGS launch new mutual fund|
|06/24/2014||Mark comments on rising interest rates in Forbes|
|05/16/2014||Forbes solicits the opinion of our CIO on possible market correction|
|04/21/2014||Mark discusses commodities in recent Forbes article|
|02/21/2014||Mark contributes article to Forbes on inflation|
|11/13/2013||Mark Eicker has interview with IndexUniverse|
|10/28/2013||Mark writes Forbes article on fixed income markets|
|09/06/2013||Mark discusses impact of global conflicts in Forbes|
|09/05/2013||Sterling Tactical Rotation receives 5 stars within Morningstar’s managed ETF strategist category|
|08/13/2013||Mark discusses equity market cycles on Forbes|
|07/02/2013||SGS selected to sub-advise on CMG|
|06/10/2013||Mark contributes an article to Forbes discussing trend analysis|