Asset Allocation

Investment portfolios are structured for total return, not just for capital appreciation from the stock market. Rising interest rates provide opportunities for income investment to supplement equity oriented investment portfolios.

Our research indicates that mutual funds of lower volatility do, over the long run, produce returns equal to more volatile mutual funds but with considerably less risk. Even a program of selecting mutual funds by relative strength performs best when lower volatility mutual funds are employed.

Before considering securities for client portfolios, investment instruments such as mutual funds, ETF’s,  index and sector funds are carefully evaluated as to their performance during both rising and falling market periods to measure both profit potential and risk level. There are times when more volatile funds prove to be both highly exciting and highly profitable. On balance, however, Appel managers feel that slower and steadier usually works better in the long run.

We believe that it may prove more prudent to emphasize risk containment and the quiet build-up of capital resources, in preparation for better stock market action later in the current decade.

Careful stock and mutual fund selection strategies are utilized, coupled with active, flexible tactics, and abilities to shift portfolio allocations.

Trades are determined using technical analysis, according to technical tools and proprietary technical trading systems and fundamental indicators developed by Gerald Appel and Dr. Marvin Appel. Technical and fundamental indicators attempt to predict whether market prices as a whole are likely to rise or fall.  Appel portfolio managers believe that allocation of assets based on the timing signals generated by its Systems is likely to complement traditional “buy and hold” strategies of investing in mutual funds.