CONCERNED ABOUT STOCK MARKET LOSSES? 

Highcroft Wealth Shield

• Primary objective is capital preservation.

• A strategy for when investments and markets generate downward momentum.

• Part of a comprehensive investment policy, complimenting the growth discipline.

• Can provide an investor with an opportunity to buy investments that have been sold off significantly, at low prices, because they preserved capital months earlier.

• We believe that investments management should comprise a plan for preservation of assets as well as for the growth of assets, both a buy and sell discipline.

Highcroft Wealth Shield Objective –The primary objective of Highcroft Investments Advisor’s Wealth Shield program is capital preservation. Using a rules-based discipline it exits investments that have broken into a bear trend, shifting the money into investments that are in a bull trend or into a defensive position (such as cash and U.S. Government bonds).

Wealth Shield is a strategy for time periods where investments or markets generate downward momentum. The discipline seeks to limit losses or lock in gains, helping to prevent further declines. During certain periods client accounts can be invested 100% in cash.

For investors who are in the retirement red zone, capital preservation can be their number one priority – Wealth Shield seeks to address their goals by managing investments during periods of significant losses.

The chart below is an example of the S&P 500 moving from a bull trend to a bear trend, and then regaining the bull trend. The index broke into a bear trend in 2008, falling almost -50%.

Note: Past performance does not guarantee future results. The 50MA and 200MA are the 50 day and 200 day moving average of prices (further defined in definitions below).

Highcroft Wealth Shield Availability - Highcroft Wealth Shield is only available in Strategic Asset Management (SAM) accounts managed, on a full discretion basis, by Gerald Asplund with Highcroft Investment Advisors. The program is not applied to other SAM accounts or to any brokerage or 401k accounts.

LPL 1-05287924

DEFINITIONS

Moving Average (MA) - Refers to a stock’s average closing price over a specified period. The reason the average is called “moving” is that the stock price constantly changes, so the moving average changes accordingly. It is one of the core indicators in technical analysis and is usually the easiest moving average to construct. The aim of all moving averages is to establish the direction in which the price of a security is moving based on previous prices. Common time periods are 50 days (50MA), 100 days (100MA), and 200 days (200MA).

S&P 500 Index - The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1950 incorporates the performance of predecessor index, the S&P 90.  The index is a capitalization weighted index of the 500 large companies listed on various stock exchanges (such as the NYSE or NASDAQ).  The S&P 500 was developed and continues to be maintained by S&P Dow Jones Indices, a joint venture majority-owned by S&P Global.  The S&P 500 differs from the Dow Jones Industrial Average and the NASDAQ Composite index, because of its diverse constituency and weighting methodology. It is one of the most followed equity indices, and many consider it one of the best representations of the U.S. stock market.

IMPORTANT DISCLOSURES

The information contained herein does not constitute and should not be construed as representation or solicitation for the purchase or sale of any security or related financial instruments in any jurisdiction.  To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual security.  This memorandum is being made available for educational purposes only and should not be used for any other purpose.

Some of the statements may be regarded as forward-looking statements. Forward-looking statements are, by their nature, subject to uncertainty.  Forward-looking statements may include assumptions relating to future investment and economic scenarios.  When used herein, the words “anticipate”, “believe”, “could”, “estimate”, “expect”, “going forward”, “intend”, “may”, “ought to”, “plan”, “project”, “seek”, “should”, “will”, “would” and similar expressions are intended to identify forward-looking statements. These forward-looking statements reflect an opinion relating to future events and are not a guarantee of future performance or developments. Reliance on any forward-looking statements involves known and unknown risks and uncertainties. Actual results and events may differ materially from information contained in the forward-looking statements as a result of a number of factors.   Accordingly, you should be prudent with your reliance on any forward-looking information or statements.

Investing involves risks including possible loss of principal.  Past performance does not guarantee future results.  Any investment or investment strategy outlined herein are not suitable for all investors, readers should conduct their own review and exercise judgment prior to investing.  Wherever there is the potential for profit there is also the possibility of loss.  No investment strategy or risk management technique can guarantee return or eliminate risk in all market environments.  International investing involves special risks such as currency fluctuation and political instability and may not be suitable for all investors.  The fast price swings in commodities and currencies can result in significant volatility within an investor's holdings.

To the extent you are receiving investment advice from a separately registered independent investment advisor or broker, please note that Highcroft Investment Advisors, Gerald Asplund, and LPL Financial are not an affiliate of and makes no representation with respect to such entity.

Certain information contained herein concerning economic trends, fundamentals, and/or technical analysis, and performance is based on or derived from information provided by independent third-party sources.  The economic forecasts set forth in this material may not develop as predicted. 

Technical analysis is generally based on the study of price movement, volume, sentiment, and trading flows in an attempt to identify and project price trends. Technical analysis does not consider the fundamentals of the underlying corporate issuer.  

The sources from which information has been obtained is assumed to be reliable; the accuracy of such information is not guaranteed and the accuracy and completeness of such information has not been independently verified.

This report, including the information contained herein, has been prepared exclusively for the use of Highcroft Investment Advisors clients, and may not be copied, reproduced, redistributed, republished, or posted in whole or in part, in any form without the prior written consent of Highcroft Investment Advisors.

All indexes are un-managed and cannot be invested into directly. Un-managed index returns do not reflect fees, expenses, or sales charges. Index performance is not indicative of the performance of any investment. All performance referenced is historical and is no guarantee of future results.  Investing in the index would require investors purchase an investment product, which would involve fees and expenses.