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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.

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HollisWealth® is a division of Industrial Alliance Securities Inc. (iA Securities), a member of the Canadian Investor Protection Fund (CIPF) and the Investment Industry Regulatory Organization of Canada (IIROC). iA Securities is a trade name and business name under which Industrial Alliance Securities Inc. operates.

This information has been prepared by [insert Investment Advisor or Portfolio Manager Name] [Investment Advisor/Portfolio Manager] for HollisWealth®, a division of iA Securities, and does not necessarily reflect the opinion of iA Securities. The information contained in this website comes from sources we believe to be reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any the securities mentioned. The information contained herein may not apply to all types of investors. The [Investment Advisor/Portfolio Manager] can open accounts only in the provinces where [she is/he is/they are] registered. For more information about HollisWealth®, please consult the official website at Green Private Wealth Counsel is a personal trade name of Paul Green.

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