Advance & Protect

At Sheehy & Molinelli, we implement a technical, “as it is” approach to the realities of today's market through an investment strategy called “Advance and Protect.”

This strategy is based on a variety of tools that provide us with buy and sell orders, using an algorithm that monitors individual investments.The discipline automatically indicates when conditions suggest it is time to buy and sell. This strategy is founded upon systematic, fact-based analysis, and we believe this discipline is essential as we attempt to preserve and grow wealth in today's volatile market.

This diagram is a simple way of illustrating the objectives of “Advance and Protect.” Of course, we can't guarantee the perfect entry or exit point. But in general, the objective of “Advance and Protect” is to enable you to participate in the market when it is advancing and move out of the market when it is declining.

How does "Advance & Protect" work?

There is no guarantee this strategy will meet its objectives. The strategy does not guarantee protection against a loss.
This illustration is hypothetical and is intended to illustrate the strategy only. The "right" entry or exit point is not guaranteed.

Q: Why did you begin offering the "Advance and Protect" strategy?

Bill: For most of my career, I was a fundamental investor. Like so many other wealth managers, I strove to predict the future of the market based on global economic data. Using modern portfolio theory, I built diversified portfolios invested in various asset classes in order to reduce risk and I advocated a "buy and hold" strategy. But in recent years, I saw that this strategy wasn't working as well as it had been. So I knew that it was time for a different approach.

Q: What do you mean by a different approach?

Bill: Fundamental investors believe it is difficult to time the stock market and therefore rely on diversification of asset classes in order to reduce risk. They are more likely to strategically position assets and hold on to them throughout the market cycle, making only some modifications in their holdings. They also are quick to point out that if an investor missed a number of positive days in the market, their returns will suffer. Therefore, the fundamental approach views being fully invested at the bottom of the market as critical.

In contrast, "Advance and Protect" is founded on technical analysis. Technical analysts contend that although they cannot time the market perfectly, they can determine through charts and measuring the volume of buying and selling when a market is moving in a positive or negative direction. So they rely on a sell discipline in order to avoid declining markets. They also point out that it is even more important to miss the most negative days in the market than to miss the most positive days.

Q: So what exactly is the Advance and Protect strategy?

Bill: "Advance and Protect" harnesses the power of technical analysis and enables us to apply it to every holding in our clients' portfolios. Of course, we can't guarantee the perfect entry or exit point, but in general, the objective of "Advance and Protect" is to participate in the market when it is advancing and move out of the market when it is declining.

To learn more about the 'Advance and Protect' strategy, call us at 609-586-9100 or email us today.