MFACET – Our algorithm to grow your wealth

Are your current investments right for you?  Do you know why you own them?  What analysis was done before they were purchased?

With your unique situation in mind, and our decades of experience, our time tested investment algorithm (MFACET) analyzes all facets of an investment before buying or sellling for you.

Let us walk you through all of the facets we analyze before any investment is bought or sold.

M = MACRO OR THE BIG PICTURE

The big picture or an analysis of Macroeconomics (from the Greek prefix makro- meaning "large" + economics) as well as an analysis of the the political landscape.  We analyze the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies.  We study aggregated indicators such as GDP, unemployment rates, national income, price indices, and the interrelations among the different sectors of the economy to better understand how the whole economy functions.  We have developed models that analzye the relationship between such factors as national income, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance.

F =  FUNDAMENTAL ANALYSIS

We analyze the value of the underlying company.  We take into account the intrinsic value of the share keeping in mind the economic conditions and the industry along with the company’s financial condition and management performance. We analyze the balance sheet, the profit and loss statement, financial ratios and other data that could be used to predict the future of a company. In other words, fundamental share market analysis is about using real data to evaluate a stock's value. The 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.

A = ANALYTICS

Analytics is our process of inspecting, cleansing, transforming and modeling data with the goal of discovering useful information, informing conclusions and supporting decision-making.  Among the hundreds of data points we analzye, some include:  asset correlations, probabilty of profit, gamma, delta, etc.

C = CUSTOM INVESTMENT SELECTION

In formulating which investements to purchase for you, we must access how much risk to take with your investments.  This is a very simple question with a very complicated answer.  Stock XYZ might be an amazing company that might be perfect for someone else but not ideal for you as the stock price flucuates too much.  As such, we ensure the investments we purchase are right for you and only you.

E = EMOTIONS

Emotions can be a great asset in life, but when it comes to investing, they may be a liability. In volatile times, equity investing can feel a lot like riding an out-of-control roller coaster. There’s the thrill and excitement when the market goes up, but also the fear and panic when it falls. As emotions increase in intensity, many investors forget that the equity market tends to move in cycles. Instead, they focus too much on short-term returns, leading them to feel overconfident in bull markets and despondent in bear markets.

These strong emotions can cloud ones judgment, resulting in costly mistakes, such as buying at the market’s peak or selling just before the market rebounds. At Blue Chip Macro with our decades of experience we understand the emotional ups and downs of investing in today’s market and use them to our advantage.

T =  TECHNICAL ANALYSIS

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume.  When using technical analysis, we focus on patterns of price movements, trading signals and various other analytical charting tools to evaluate a security's strength or weakness.

In this age of algorthmic trading and high frequency traders, it is our opinion that technicial analysis has become a self fulling prophicy.  Meaning if enough people think that when a stock hits a certain price it will act a certain way, then it will as everyone will act in accordance.  At Blue Chip Macro, we know those infection points so we can understand what is happening and take advantage of it.

Blue Chip Macro is a Registerd Investment Advisor that is based in Santa Monica, California and primarily serves the greater Los Angeles area.  We are a  money manager and offer financial planning, business consulting, investment management and many other financial services.  If you want to learn more about investing in stocks, asset management, or wealth management please contact us for a free consultation.