INVESTMENT STRATEGIES

Frank A. Childress

DBA

Childress Investment Management

888 E Saddlehorn Rd Sedona AZ 86351
Phone: (425) 985-2621 Email: childressinvtmgt@msn.com

Childress Investment Management's (CIM) primary method of financial analysis for determining the best investments for client accounts is by studying trends in the overall economy of the United States and the Global Economy. By studying important economic indicators such as job growth, GDP growth, interest rates, industrial production and retail sales assists us in formulating an opinion regarding the direction of the economy.   We will use these indicators to determine client allocations to stocks, bonds and money market funds.

If we believe there will be a deterioration in the economy, stock allocations will be reduced. Vice versa, if trends indicate an acceleration in economic growth, stock allocations will be increased.

Investments in bonds will be determined by our analysis of the direction of interest rates. If our research indicates that interest rates are poised to rise, than investments in bonds will be reduced. If our research points to interest rates going down, than investments in bonds will be increased.

There are material risks involved with any investment strategy or method of analysis. No method or analysis can be right in all circumstances due to the complexity of the world economy and unforeseen events such as the terrorist attack of 9/11. We strive to reduce risks caused by our methods and analysis by making gradual changes to our client investments and allocations. Typical allocations changes would be 5% or less for client accounts. For example, if a client was 60% invested in stocks, we would either increase or reduce this stock allocation amount by 5% or less.  Our strategy does not eliminate losses but strives to lower investment losses during difficult years like 2008. 

CIM uses a wide range of investment securities.  Adviser recommends no load mutual funds, ETF’s and stocks. 

Mutual funds and index funds are utilized for accounts with less than $100,000 in equity, due to the ease of diversification and reduced costs.  For accounts over $100,000, individual stocks, stock index funds and bonds may be used in addition to mutual funds.