Flexibility in the market serves as the most effective means to generate a desirable rate of return.
Dividend yields, which make up much of a stock’s return, are currently very low, and price-to-earnings multiple expansion unlikely to match that seen in the 1980s and 1990s. Therefore, we choose to be more flexible instead of being restricted by devotion to a traditional, single asset-allocation approach. In other words, with the expectations that the years ahead will not perform as in the past twenty years, it is essential to be an active asset manager effectively making adjustments in these changing economic business cycles as these rotations occur.
Consistently outperforming the market by a modest amount leads to large rewards.
Compounding is a very powerful, but often overlooked, aspect of investing. Consistently outperforming through either a rising or declining stock or bond market, by even a few percentage points per year, dramatically increases the wealth of an investor over modest time horizons.
Monitoring psychological levels of “Greed and Fear” – essential for long-term success.
Wavetech Enterprises manages all client accounts by evaluating both market and investor psychology by using various types of statistical data and technical analysis.
Diversification to enhance long-term client portfolio stability.
From an operational perspective diversification, when partially or fully vested, provides us with:
We invest solely in the best interest of our clients.
Wavetech Enterprises, LLC is an independent, fee-only investment advisor, and therefore has no potential conflicts of interest that could adversely affect our client’s investment performance. We receive no commissions or incentives to cloud our investment judgement and we do not participate in “revenue sharing” programs with any brokerage or mutual fund families that could bias us toward funneling client assets into particular assets or funds.
INVESTMENT STRATEGIES PURSUED
Wavetech Enterprises, LLC investment style can best be described as active asset allocation based. Unlike most investment firms that focus solely on “value” or “growth” stock investing, we recognize that economic business cycles, relative valuations and market psychology all influence various market sectors differently and lead to an ever-changing landscape of exploitable investment opportunities. Our ability to generate above-market returns hinges on the quality of the decisions we make in three key areas – broad stock market exposure, wave pattern technical analysis and individual investment selection.
Where possible we implement our investment views using no-load index mutual funds that pursue a range of investment strategies from large cap growth and value stock to more specialized regional emerging markets debt and equity, natural resources, and market-neutral strategies. In appropriate cases we will also hold positions in individual stock, preferred stocks, exchanged traded funds (ETFs), closed-end mutual funds, US Treasury zero coupon bonds (STRIPS), and conventional US Treasury Bills, Notes and Bonds. These are traded by major institutions throughout the world for the purpose of direct profits as well as a hedging tool for large cash and equity positions. These preferred index mutual funds are highly liquid and can generate profits in both a rising and declining stock market.