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Investing in Uncertain Times

Green Financial Group is excited to announce the introduction of the Diversiflex investment program. Through partnership with HollisWealth, we are able to bring this unique approach to investing to our clients this year. This proactive investment strategy is designed to deal with the realities of today's markets.

Over the past few years improvements in technology and new investment products have provided access to asset classes beyond traditional stocks and bonds. We have implemented the use of technical analysis to assist us in determining strength and weakness in the markets. By combining these two important tools, we have a better opportunity to reduce risk in your portfolios and improve long-term returns.

Diversiflex is an extension of the Tactical Asset Portfolio System we introduced last year. By combining technical analysis with fundamental analysis, we can answer the question of when to buy and not just what to buy.

An example of this is the S&P 500 since the year 2000. By simply using fundamental analysis and holding stocks over the entire period, you would have gone through two bear markets losing approximately 50% each time. If you had been using technical analysis, you could have reduced those losses and improved overall performance over the 13 years. Diversiflex reduces the risk of significant losses and therefore enhances your long-term returns.

By analyzing the market from a technical perspective (ie. looking at trends in price and cash flows) we can identify points in time during the past 13 years when the market had fallen through support levels or rose above resistance levels. Using this information would have provided us with the opportunity to rotate in and out of the market depending on whether it is favored or not. In addition to identifying the strengths and weaknesses of a particular market or individual security, we can also compare one asset class against another and determine where the relative strength is. Understand that when money is flowing out of the stock market it doesn't just disappear, but rather moves to other asset classes such as cash, bonds, commodities or currencies.

The Diversiflex program has a Portfolio Manager who uses Relative Strength Analysis to select and monitor the holdings in the portfolio every day. The portfolios typically have between five and eight holdings representing the strongest relative strength asset classes as determined by our daily technical analysis. The holdings will be a combination of exchange traded funds and Dynamic mutual funds. Rebalancing may involve the replacement of one fund with anotherthat shows a higher relative strength. In the event that the daily analysis determines that the equity markets are not favourable, the manager has discretion to protect your money by moving some or all of it into cash.

In hypothetical back testing of our process, the results on our investment returns have been very solid. We saw significant protection from losses when markets were not favourable and typically saw equal performance during favoured markets. Overall, we would expect that you would experience less volatility and better returns when using the Diversiflex program.

Please give us a call to arrange a meeting for more information.

HollisWealth® is a division of Industrial Alliance Securities Inc., a member of the Canadian Investor Protection Fund and the Investment Industry Regulatory Organization of Canada. Green Private Wealth Counsel is an independent company unrelated to HollisWealth and Industrial Alliance Securities Inc. Industrial Alliance Securities Inc. and its related and affiliated companies have no liability for Paul Green.
HollisWealth and the Alliance Securities Inc. companies do not provide income tax preparation services nor do they supervise or review other persons who may provide such services.
The particulars contained herein were obtained from sources which we believe are reliable, but are not guaranteed by us and may be incomplete. The opinions expressed are those of the advisor alone and not those of HollisWealth® is a division of Industrial Alliance Securities Inc. This website is not deemed to be used as a solicitation in a jurisdiction where this Industrial Alliance Securities Inc.representative is not registered.