- Bill Gunderson founded Gunderson Capital Management in 2006
- He witnessed the collapse of momentum stocks in the late 1990s.
- He also saw the meltdown of the most popular value stocks in 2008.
- Pure momentum investing ignores value
- On the other hand, pure value investment ignores momentum
- Both are necessary, so Bill Gunderson created the Best Stocks Now! style of investing
- This combines both momentum and value
What is market timing?
- The economy and markets are cyclical
- Successful investment requires both a good offense and a good defense
- Here at GCM, we’ve been bullish since March 2009
- We have turned cautious a few times along the way.
- But with earnings growth and market expansion, it’s best to make hay while the sun shines.
- S&P 500 earnings have been growing since 2009
- This cycle will eventually end
- Then comes time to protect your harvest
- Active management in timing the market is central to our philosophy
- Anyone can buy the index
- Anyone can buy and hold
- Anyone can allocate assets
- Active management is a science, and it pays off
How does risk tolerance affect investing?
- There is a direct correlation between risk, potential reward, and potential loss
- Greater risks offer potential for a higher gain or loss
- Lesser risks offer smaller gain potential with less potential for a loss
- It is our job to figure out where you fit on the risk tolerance scale
- We offer portfolios that fit your investing risk tolerance
- This consists of:
- Three different equity portfolios
- One income & growth portfolio
- One individual bond portfolio
- During full investment, these portfolios have 25-40 positions
- At times, they may have inverse funds as hedges or investments
- The portfolios may have a high degree of cash
What is the objective of our portfolios?
- Income & Growth- This portfolio seeks long-term capital gains treatment. This is a buy-and-hold portfolio.
- Conservative Premier Growth- A portfolio made up of large-cap companies Bill deems suitable for investors who are low-risk.
- Ultra Growth- A moderately-aggressive and volatile portfolio designed for investors with long-term time horizons, seeking maximum growth.
- Emerging Growth- This is our most aggressive and volatile portfolio. These are smaller-cap stocks compared to Premier Growth.
- Best Funds Now- A portfolio designed for investors with long-term time horizons who are seeking maximum growth.
- Best Bonds Now- A portfolio of individual corporate bonds. It presents a lower risk than equity portfolios.
What is our time horizon?
- You should have a time horizon of at least a few years
- 3-5 years is a good minimum for investing
- 5-10 years is even better
- Planning is crucial
- If you do not have a plan we will work with you to create one
- Having a plan takes the emotion out of the equation
- It is important that your emotion, strategy, and expectations are realistic and consistent
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