"You don't need to swing hard to hit a home run. If you got the timing it will go."- Yogi Berra.
Railroad Street Wealth Management, LLC ("Railroad Street") is dedicated to tactical portfolio management. We believe no one can predict future movement in the capital markets. However we believe managing risk using a rules-based methodology based primarily on supply and demand as well as relative strength adds clear value to our clients. Our goal is to limit capital market exposure in bad technical markets and increase capital market exposure in good technical markets. An important key to our investment process is a consistent methodology. Railroad Street offers five asset allocation models that will adjust, depending on the technical conditions in the capital markets. Based on these technical conditions the models will either be in an offensive mode or defensive mode.
Railroad Street portfolio management requires daily research of domestic equity, international equity, fixed income, commodity and currency markets. Our risk management methodology is not predicated on "Buy and Hold". Railroad Street may employ portfolio management techniques to include sector rotation in domestic equities, country rotation in international equities, maturity and credit rotation in fixed income as well as rotation into favored areas of commodities and currencies. Changing technical conditions in the capital markets could dictate changes in our models (offense or defense). In extreme circumstances hedging instruments such as ETF's or equity/index options could be incorporated in our portfolio management. Some clients may employ covered call writing strategies to generate income. Railroad Street has determined the most cost effective way to execute tactical management of our client accounts is by using a fee based compensation system. All security transactions for our clients are "wrapped" into Railroad Street asset management fees. Each client will clearly understand the fee they are paying. Clients utilizing mutual funds or ETF's in their portfolio will be advised about operating expenses associated with these investment instruments.
There is an old saying... "A jack of all trades can be master of none." Railroad Street believes the best way to accomplish our mission to provide value to our clients is to devote 100% of our time and expertise to two client services. Asset Management and Financial Planning.
Asset Management: The 5 tactical allocation portfolios provided by Railroad Street are managed based on daily research provided by Dorsey Wright and Associates in Richmond Virginia. Founded in 1987 Dorsey Wright has been a leading advisor to Wall Street and investment managers worldwide. Their expertise is technical analysis. They focus on the relationship between supply and demand and relative strength in the financial markets. The Firm's methodology is utilized in a number of exchange traded funds sponsored through providers such as Invesco Power Shares and First Trust. On January 5, 2015 Dorsey Wright was acquired by NASDAQ for $225 million. The acquisition is expected to enhance Dorsey Wright's web-based advisor tools provided to firms like Railroad Street. Once we have a full picture of your investable assets we can recommend one of our 5 tactical asset allocation models that may be appropriate for you. Three of Railroad Street tactical asset allocation models use traditional strategic allocation (conservative, moderate, aggressive) models for baseline asset allocations. Two of our models utilize straight tactical allocations and are called our flex and three legged stool asset allocation models. All 5 models will adjust to either a "Offensive or Defensive Tilt" depending on technical conditions in the Capital Markets. We will than provide you with an Investment Policy Statement (IPS). This document outlines account objectives and targets asset mixes. The IPS gives guidelines and constraints to ensure a disciplined approach to managing your investment assets.
Financial Planning: There is an old saying in medicine. "prescription without diagnosis is malpractice." Railroad Street is pleased to provide free financial planning to our clients using a state of the art financial planning platform. Our financial planning platform can aggregate all your investable assets held at other firms, banks and retirement plans and can provide you with a daily picture of all your assets. We feel it is important to include all your assets in our portfolio management.By utilizing tactical management there may be tax consequences that effect some of our clients. Railroad Street does not provide accounting services. However our firm believes portfolio construction must use a considered approach when dealing with qualified accounts (IRA's, Roth IRA's, 401k, 403b etc.) and non-qualified accounts. In non-qualified accounts we believe long term and short term capital gain ramifications must be understood by each of our clients. Additionally the Railroad Street financial planning platform can also provide you with a secure "vault" for all your important papers that can even be accessed from your mobile phone. It can also provide our clients with "what if" capabilities regarding your retirement planning or identify estate issues that can be best addressed by your attorney or insurance professional.