Dunham Capitalizes on Market Declines, Buying Stocks Wisely
When Others Sold on Tariff Fears, Dunham Bought
Dunham & Associates' Unemotional, Algorithmic Investment Approach—DunhamDC—Buys Fear and Sells Greed
Dunham & Associates Investment Counsel, Inc. has announced a strategic increase in stock positions while a wave of fear-driven selling permeates the market. This approach, driven by its signature DunhamDC algorithm, is designed to seize opportunities during downturns by buying when others are hesitant.
In the face of market volatility, DunhamDC recently issued two buy signals, one reflecting a global investment strategy and another focused on the U.S. market. This dual signal illustrates the algorithm's response to heightened investor anxiety, showcasing the discipline embedded in Dunham's strategic framework.
Salvatore M. Capizzi, Executive Vice President at Dunham and the visionary behind DunhamDC, emphasized the strategy's capacity to exploit market dips. He stated, "While others were selling based on fear, DunhamDC recognized an opportunity and bought. This environment has created the emotional conditions the strategy was designed to respond to. Our system supports investor discipline amidst the chaos of market movements.”
The foundation of DunhamDC's philosophy is centered around buying during fearful market conditions and selling during periods of greed, drawing inspiration from investment legends like Warren Buffett and Benjamin Graham. This tactical buying of equities during declining markets seeks to prevent impulsive emotional decisions that often derail investment strategies.
For instance, earlier in the year, as equity markets soared to new heights, a traditional 60/40 portfolio maintained by DunhamDC held merely 27% in equities. However, as markets began to falter, the model systematically increased its equity allocations, taking advantage of favorable prices during downturns.
Ryan Dykmans, CFA and Chief Investment Officer at Dunham, shared insights on the algorithm's current performance. "DunhamDC is functioning as designed—reducing exposure in bubble markets and expanding during downturns. This alignment with market conditions reinforces the algorithm’s strength in navigating volatility while positioning portfolios for potential gains.”
DunhamDC is rooted in the belief that successful long-term investing hinges on a disciplined, systematic process, free from emotional bias. By applying a consistent strategy, this overlay is crafted to adjust portfolio allocations thoughtfully through varying market cycles.
The commitment to this disciplined approach remains resolute, no matter how market conditions unfold. Dykmans notes, "DunhamDC will continue to buy equities should the market decline further and will sell if a substantial rebound occurs. This strategy is not about merely enduring the volatility; it focuses on capitalizing on lower valuations and the accompanying growth potential that declining markets present.”
About Dunham & Associates Investment Counsel, Inc.
Dunham & Associates is dedicated to providing innovative wealth management solutions and has been questioning industry conventions for nearly four decades. With a focus on differentiated investment strategies, the firm emphasizes tailored approaches that align with clients' diverse financial goals. Clients are equipped to navigate market complexities, benefiting from Dunham's depth of expertise.
Financial advisors can leverage a range of Dunham's client service and asset allocation resources to enhance portfolio management practices. Additionally, with comprehensive back-office support, advisors can work collaboratively with Dunham to construct well-balanced portfolios integrated with diverse mutual fund strategies. The compensation model for Dunham's sub-advisors is directly tied to investment success, showcasing the firm’s commitment to transparency and accountability.
To learn more, please visit Dunham's official website.
Media Contact:
JConnelly for Dunham
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Disclosures:
This communication is purely informative, intended for education and should not be treated as investment advice. Any products mentioned are illustrative and not offers for specific securities. Always consult a qualified professional for personalized investment recommendations.
Investors should review all potential investment risks and expenses associated with Dunham Funds prior to investing. The summary prospectus and detailed prospectus provide essential information to consider.
Various investment strategies bear different risks, with no guarantee of profitability in any chosen strategy. Clients should remain aware that all investments carry the risk of principal loss. Accordingly, clients should not assume the information supplied herein is comprehensive or substitutes for personalized advice.
Past performance does not predict future outcomes. No investment strategy can assure returns in fluctuating market environments. There may be periods when investments perform poorly or depreciate in value.
DunhamDC is a proprietary investment algorithm of Dunham & Associates, targeting the mitigation of sequence risk faced by investors due to the timing of withdrawals.
Frequently Asked Questions
What is DunhamDC?
DunhamDC is Dunham & Associates' proprietary algorithmic investment strategy designed to buy during market downturns and sell during peaking market conditions.
How does DunhamDC influence investment decisions?
The algorithm helps investors maintain discipline by providing timely buy or sell signals based on market volatility, promoting sensible allocation adjustments.
What investment philosophy does DunhamDC follow?
DunhamDC operates on the principle of "Buy Fear, Sell Greed," a strategy inspired by Warren Buffett and Benjamin Graham.
What benefits do advisors gain from partnering with Dunham?
Advisors can utilize Dunham's wealth management tools and participate in client-focused portfolio management with access to diversified investment strategies.
How does Dunham's investment approach address market volatility?
By promoting a disciplined, algorithmic strategy, Dunham's approach helps investors to remain focused on their long-term objectives during periods of market fluctuation.
