Maycrest Capital's CEO Featured in Advisor Perspectives
Maycrest Capital has outperformed the market over more than eleven years with an annualized return of 11.43% versus 8.31% for its benchmark, the S&P 500 TR Index. Richard Davis, the firm's CEO, shared some insights with Advisor Perspectives.
By: Maycrest Capital
Captured below are some of Richard Davis' views on the market and his firm's strategy.
· The U.S. economy – Unemployment is at historical lows and inflation is not out of control. That should bode well for a continued stable economy, at least in the next one to three months. Trade negotiations and tightening monetary policy are clouds on the horizon.
· U.S. stock market valuations – The S&P 500 Index trades at approximately 17-times forward earnings; the valuation of stocks seems acceptable given the low interest rate environment.
· Firm's investment approach – Maycrest Capital employs an active risk management approach. The strategy focuses on the protection of asset values in bear markets by reducing the stock market exposure in the portfolio as the economy softens. The strategy's design is to reinvest in the stock market before a business cycle expansion starts again, when stocks are relatively cheap, and to grow the portfolio with the broad market.
· Firm's model – Maycrest Capital has developed a mathematical model, the BearCasting model, to help determine points in the business cycle when the risk of investing in stocks outweighs the returns. The model takes into consideration macroeconomic, technical and sentiment indicators.
· Strategy implementation – The firm uses a disciplined investment process that seeks to be invested in the U.S. equity market most of the time. The portfolio is invested primarily in broad-based liquid ETFs and designed to capture the returns of the stock market in expansionary periods, while limiting drawdowns in recessionary environments. Discipline and patience are keys to successful strategy implementation.
The full article can be accessed here (https://www.advisorperspectives.com/
About Maycrest Capital
Maycrest Capital is a research and asset management firm registered with the Florida Office of Financial Regulation. The firm's focus is to manage assets using the Maycrest Balanced Fund Strategy. Visit www.maycrestcapital.com for more information.
The firm may only conduct business in states where it is properly registered to do so. Past performance of the Maycrest Balanced Fund Strategy is not indicative of future results. An investment in the Maycrest Balanced Fund Strategy is not appropriate or suitable for all investors and involves the risk of loss. Investors should expect unprofitable periods.