Stewardship

It’s not about accumulating wealth. It’s about buying choices!

In 1885, the founder of the Wall Street Journal, Mr. Charles H. Dow, began to study and observe stock market price movements. ¹

Thus began the creation of the Point and Figure style of technical analysis.

In 2001 I left the big Wall Street brokerage firms, went independent, and now offer financial advice through KMS Financial Services, Inc. I was looking for tools to help me manage money. My industry does not teach one to manage money, only to sell the products they make. I have vivid memories of a manager at Merrill Lynch telling me “we have the best research in the industry, get out there and sell it”.

Today I buy my research from a firm in Richmond Virginia called Dorsey Wright and Associates (www.dorseywright.com). They have continued to expand the uses of Point and Figure Charting to include Relative Strength measurements. Today’s cloud-based computer power allows them to update and compare over 7 million charts every night and then rank them to create any variety of matrixes.

Using these Relative Strength charts, we can rank broad asset classes like Cash, US Stocks, Bonds, International Stocks, Currencies, and Commodities, to see where the strength lies and what to overweight/underweight. We can then look within these asset classes to look at sectors and individual securities. I can pick and choose securities from all asset classes, from around the globe, to meet and accomplish your goals and objectives.

I look for strength to buy, weakness to avoid.

I do not subscribe to the pie chart style of investing that was created from modern portfolio theory which dominates my industry. I have been through too many recessions and bear markets where they simply did not work. My clients never seemed to care that we were down less than the market. They simply did not want to be down at all!

It is not about outperforming some obscure index or reallocating among your pie chart holdings. It is about knowing what parts of the world’s financial markets are working now, and putting money into that trend. It is you knowing that a process is in place that can give you the peace of mind and comfort that when the world seems to be going crazy, someone with experience has your back.

I am not saying that we do not experience losses, we do. But when a holding loses its leadership position, it gets replaced.

I am happy to get online with you and show you how it works.

^{Villiers, Victor De and Owen Taylor, The Point and Figure Method, 1934}