pRIVATE pORTFOLIO aNALYSIS & dESIGN

The Importance of Physics in Investing

Newton's three laws of motion, also found in "The Principia," govern how the motion of physical objects (including capital markets) change. They define the fundamental relationship between the acceleration of an object and the forces acting upon it.

• First Rule: An object will remain at rest or in a uniform state of motion unless that state is changed by an external force. 
• Second Rule: Force is equal to the change in momentum (mass times velocity) over time. In other words, the rate of change is directly proportional to the amount of force applied. 
• Third Rule: For every action in nature there is an equal and opposite reaction. 

If you agree that capital markets have "motion" than they must be subject to these three laws of physics. 

We've discovered over our 25-year participation in the US Equity Markets that there are two primary energy forces that move markets.

            1. Fear

            2. Greed

Bet on fear when greed is in force, you lose money.  Bet on greed when fear hits, you lose lots of money (Crashes). The key to phenomenal returns is directly proportionate to your ability to identify the stages (cycles) of each energy force.  

This is by no means an easy task.   In fact, it's why most investors (public & professional) fail.  That's why it is imperative to constantly review your portfolio holdings not just for return satisfaction but positioning for that juncture in the cycle. 

Why Portfolio Analysis & Design 

We know that Fundamental Analysis projects what should happen.  Technical Analysis illustrates what did happen, and Program Trading/A.I. provides a mathematical hedge for what could happen.   A well-constructed portfolio contains bullish, bearish and neutral positions which fluctuate as each cycles enfold.  How fluid is your portfolio?

OCM's Portfolio Analysis and Design is not a generic, computer program that spits-out uninformative verbiage that promotes alternative investment products.
If your broker/wealth manager has not alerted you to significant changes needed in your portfolio design or allocation to prevent the next catastrophic loss, "I advise you to panic"( Hugh Hendry - The Acid Capitist). 

To glean an understanding of what OCM's Portfolio Analysis can do for you, please contact Tom Robertson to arrange a brief, no cost, initial consultation.   
Contact:  trobertson@whyoasis.com  or Toll Free: 1-888-231-0775 Ext.125 .