Roller coasters should be exciting. Not the market.

WHAT IS THE HCM-BUYLINE®?

Take emotion out of the equation

It is painful to watch the value of your portfolio drop, which is why we’ve spent years developing our proprietary HCM-BuyLine® to help defend assets. The HCM-BuyLine® uses a proprietary quantitative investment indicator to determine when we should be in or out of the market. This non-emotional, mechanical, and repeatable system helps take the emotion and the guesswork out of investment decisions. The graph below illustrates the dates when the HCM-BuyLine® precipitated a shift in asset allocations.

HCM-BuyLine®

The HCM-BuyLine®: Three scenarios.

Fully Invested
POSITIVE SIGNALS

Once the S&P 500 Index closes above the HCM-BuyLine® for five consecutive trading days after having dropped below one or both of the previous two levels, we will be reinvested in equities.

Reduced Equity Exposure
CAUTION SIGNALS

When the S&P 500 Index’s closing price drops to 3.5% below the HCM-BuyLine®, we will assume a reduced exposure in equities by investing in cash or cash equivalents.

Further Reduced Equity Exposure
NEGATIVE SIGNALS

If the S&P 500 Index drops to 6.5% below the HCM-BuyLine®, we will further reduce exposure in equities.

“Returns Matter. Risk Management Matters.”

– VANCE HOWARD, CEO + PORTFOLIO MANAGER

In use since 1996, this tool overlays all of our separately managed portfolios, as well as our proprietary Mutual Funds and ETFs. The HCM-BuyLine® uses trend analysis to help identify the broad trend in the equity market. When the trend is down, we reduce exposure to equities, and when the trend is up, we increase exposure to equities.

Important Disclosure Information, Limitations of the HCM-Buyline® Illustrator
The HCM Optimized Trend Indicator (“OTI”) also known as the HCM-Buyline® Illustrator is a tool developed by Howard Capital Management, Inc.

The hypothetical buys or sell signals reflected in the chart above do not reflect actual signals generated by the HCM- Buyline® but were achieved through retroactive application of the HCM- Buyline® Illustrator to the specific security selected. Results may vary with each use and over time. The historic HCM- Buyline® Illustrator signals above are provided with the benefit of hindsight. Such back tested signals have inherent limitations, particularly the fact that these results do not represent actual signals and/or trading and may not reflect the impact that material economic and market factors might have placed on the composition of the model and the manner in which the model composition would have impacted the recommendations generated by the HCM- Buyline® Illustrator. These signals should not be viewed as indicative of the adviser’s skill and do not reflect the performance results that were achieved by any particular client. Thus, the HCM-Buyline® Illustrator will provide the same results for the same ticker each time, due to the same methodology being consistently applied.  The HCM- Buyline® Illustrator does not consider any particular universe of investments, other than the particular ticker that is being run through at that particular time. This only shows 100% equity in sales or buys, and 100% equities moved to cash when applicable. LASS.OTI.WEB.011322

It’s not if the market will turn. It’s when.

Defend Tomorrow, Today.

The HCM-BuyLine® indicator is designed to preserve capital in market downturns while seeking to outperform the major indices during market upswings. Our objective indicator is technical, working to direct us through bull and bear market trends.

The goal of the HCM-BuyLine® is to bypass the decline by moving to the safety of money markets and/or short-term bonds. Highlighting the financial meltdown in 2008 and again in 2020, the HCM-BuyLine® signaled to exit the equity market, allowing many clients to preserve capital and stem losses even during significant downturns in the broader markets.

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All investments are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares when redeemed may be worth more or less than their original costs. There are unique potential risks associated with the specific asset classes that a Mutual Fund or ETF represents. You should carefully consider the risk, charges, and expenses of an ETF prior to investing. There can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. Stoploss protection will not necessarily limit your losses to the desired amounts due to the limitations of the HCM-BuyLine®, market conditions, and delays in executing orders. It is not an actual stoploss order that automatically sells securities in the portfolio at a certain price. There can be no guarantee that the HCM-BuyLine® indicator will perform as anticipated. Stoploss protection will not necessarily limit your losses to the desired amounts due to the limitations of the HCM-BuyLine®, market conditions, and delays in executing orders. It is not an actual stoploss order that automatically sells securities in the portfolio at a certain price.

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