Maycrest Capital's Equity Strategy Flirts with New Highs at the End of Q2/2019
Maycrest Capital's CEO highlights the firm's investment results for the first two quarters of the year.
By: Maycrest Capital
"The markets have remained volatile for more than a year now, and volatility may be here to stay. Investors should take a long-term view and not get spooked by the zig zag of the market," says Davis. "Some investors employ a buy-and-hold strategy and have confidence that the market will recover after a drop. But suffering through losses is painful, so investors may want to protect their portfolio value and take money off the stock market table when they see a bear market coming. Retirees in particular, worry that they may not have the time to recover from a sharp drop in the market."
Maycrest Capital's equity strategy is a tactical strategy that is designed to avoid large drawdowns that often coincide with recessions. "Our Maycrest Balanced Fund Strategy is invested in the stock market over much of a business cycle, but is designed to reduce the exposure to equities when the economic conditions are weakening and the U.S. is headed towards a recession. We base our investment decisions on signals provided by our software model, the BearCasting Model. Our BearCasting Model incorporates macroeconomic, technical and sentiment data and essentially signals how to allocate the funds between stocks and bonds or cash. While our Model still indicates that we should be invested in equities, we have seen some indicators deteriorating recently, so it is time for us to be on alert."
Since its inception in January 2007, the Maycrest Balanced Fund Strategy has had an annualized return of 10.76% versus 7.99% for the S&P 500 Total Return Index – an outperformance of 277 basis points annually. The Strategy is available to investors through separately managed accounts at Interactive Brokers.
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 its tactical equity strategy, the Maycrest Balanced Fund Strategy. Visit our website www.maycrestcapital.com for more information on the firm, its equity strategy and performance.
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 firm's strategy is not appropriate or suitable for all investors and involves the risk of loss. Investors should expect unprofitable periods.