Investment Research Methodology
The goal of Harvest Wealth Management for Life™ is not to sell you products, but to provide solutions to the financial challenges standing between where you are today and where your Wealth Management Plan wants you to be. That’s why our research methodology is grounded in fundamental analysis and technical analysis, combined with our discretionary approach to managing client accounts.
We develop long-term diversified asset allocation models based on fundamental analysis and use an overlay based on technical analysis to take advantage of short-term opportunities in the market. Our independent, objective, and unbiased approach seeks only to identify the best possible investment solutions to meet your objectives.
Unlike banks and institutional portfolio managers, who may have a vested interest in keeping their clients in the market at all times, we understand that it may be prudent at times to not be fully in the market. Our fiduciary standard of care means that we move from invested to cash positions and vice-versa based on broader market conditions. The same cannot be said for other investment managers, who often do not get paid when client money is sitting in cash. As a result, the major institutions tend to develop an overly optimistic view of the market that cannot always be justified.
Fundamental analysis uses real, public data in the evaluation of a security’s value. Although most analysts use fundamental analysis to value stocks, this method of valuation can be used for just about any type of security. For example, an investor can perform fundamental analysis on a bond’s value by looking at economic factors such as interest rates and the overall state of the economy. S/he can also look at information about the bond issuer, such as potential changes in credit ratings.
For stocks and equity instruments, this method uses revenues, earnings, future growth, return on equity, profit margins, and other data to determine a company’s underlying value and potential for future growth. In terms of stocks, fundamental analysis focuses on the financial statements of the company being evaluated. One of the most famous and successful fundamental analysts is the so-called “Oracle of Omaha,” Warren Buffett, who is well known for successfully employing fundamental analysis to pick securities based on their longer term fundamentals.
Technical analysis is a trading tool employed to evaluate securities and attempt to forecast their future, shorter term movement by analyzing statistics gathered from trading activity, such as price movement and volume. Unlike fundamental analysts who attempt to evaluate a security’s intrinsic value over the long term, technical analysts focus on charts of price movement and various analytical tools to evaluate a security’s strength or weakness and forecast future price changes in its market shorter term.
The Harvest Group vs. Traditional Banks
|Bank||The Harvest Group||Benefit of The Harvest Group Approach|
|Discretionary and non-discretionary portfolio management||Discretionary portfolio management||A cost-effective approach that ensures client has access to better investment opportunities through a dedicated THG financial advisor.|
|Fundamental-focused||Fundamental- and technical-focused||Long-term approach to investment that also takes into account short-term price movements in securities.|
|Invested at all times||Move between invested and cash positions||The Harvest Group has no vested interest in keeping client funds invested at all times, which translates into a more accurate view of the markets and better investment decisions.|
|Rely on optimistic financial forecasts||Forecasts account for downturns and bear markets||Realistic forecasts that account for up and down markets are better positioned to outperform during volatile periods.|