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Traditional Investment Strategies

These are traditional investment strategies that are used in brokerage accounts:

  • Asset Allocation: Establishing a suitable base investment mix and periodically rebalance the portfolio in order to maintain a long-term goal for asset allocation.
  • Buy and Hold: Intending to buy and hold securities for a long period of time, regardless of fluctuations in the market; not concerned with short-term price movements or technical indicators
  • Dollar Cost Averaging: Designed to potentially reduce volatility in which securities, typically mutual funds, are purchased in fixed dollar amounts at regular intervals, regardless of what direction the market is moving.
  • Hedging: Investing with the goal to reduce the risk of adverse price movements in a security or securities, by taking an offsetting position in a related security, such as using derivatives, options, short sales, or being long in an offsetting position some of which may require additional forms and approval.
  • Indexing/Passive Investing: Purchasing of investment products with returns to correlate to a specified index.
    Liquidations: Converting securities into cash or equivalents by selling them.

*Asset allocation does not ensure a profit or protect against a loss.

*Dollar cost averaging involves continuous investment in securities regardless of fluctuation in price levels of such securities. An investor should consider their ability to continue purchasing through fluctuating price levels. Such a plan does not assure a profit and protect against loss in declining markets.

*Fund of hedge funds involve special considerations and risks not associated with an investment in traditional mutual funds. Each fund’s investment program is speculative and includes risk inherent with an investment in securities, as well as specific risks associated with the use of leverage, short sales, options, futures, derivative instruments, investments in “junk bonds,” non-US securities, illiquid investments and limited regulatory oversight. Each fund is a non-diversified fund and invests in Hedge Funds that may invest a substantial portion of the assets managed in an industry sector. Higher fees, potential investor income qualifications and strategy limitations must be considered in any suitability determination.

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