INVESTMENT APPROACH – WHAT IS MomoFoMO?
Warren Buffet has two Golden Rules of Investing:
- Rule #1 – Never lose money.
- Rule #2 – Never forget Rule #1.
While market volatility and the nature of investing means that no one can guarantee not to lose money, we do our best to minimize downside risk for our clients. We call our approach to investment management MomoFoMo. Not only is it fun to say, it’s also a time-tested and efficient approach to managing our client’s investments.
What is MomoFoMo?
MomoFoMo is our proprietary investment price trend monitoring tool that helps us determine when to buy, hold or sell investments in clients’ portfolios. Specifically, it helps us anticipate when major market corrections may be occurring. Based on this information, we attempt to remove our clients from equity markets prior to significant downturns. By doing so, we strive to help clients avoid the loss of capital while also providing them with cash to reinvest when markets prices may be lower.
MomoFoMo was built in collaboration with a clinical statistician and incorporates a wide range of research, market data analysis, modern portfolio theory concepts and diversification parameters. It interprets 26 distinct market indicators each day to provide a statistical analysis of price movements and trends.
The name MomoFoMO is derived from two technical charts that we use in monitoring investment prices: Momentum (Momo) and the Fear of Missing Out (FoMO). The tool interprets information from these charts with a goal of positively influencing portfolio returns over the long term by potentially avoiding significant downturns and making purchases at potentially more efficient points in time.
Interested in learning more about how MomoFoMo can work for you? Contact us to schedule a complimentary, no-obligation consultation.
*All investing involves risk including loss of principal. No strategy assures success or protects against loss.