DYNAMIC VALUE INVESTING COMBINES THREE PROVEN INVESTMENT TECHNIQUES FOR SUCCESS:

1) MARKET TRENDS DETERMINE ENTRY AND EXIT POINTS

IntelligentValue's proprietary 'Dynamic Value Investment' approach starts with identifying market trends and buying stocks when indicators have bottomed and are heading higher, then selling and moving towards cash (or inverse ETFs) when the market is consolidating or headed downward.

Many people say that it is impossible to perfectly time the market, and we agree. However, it's not as difficult to identify price trends and times when the market is over/undervalued.

We don't have a reason to cheer for either bull markets or bear markets. IntelligentValue's approach to investing doesn't depend on one direction of the market. Our approach is to try to make money in both upward and downward markets, so we play both side and will always shoot straight with you. There's no reason for us to push for either the long or short side of the market. As Jesse Livermore once said, "There is only one side of the market and it is not the bull side or the bear side, but the right side."

We utilize the work of a highly respected technical analysis firm to help us determine periods when the market is oversold and is beginning to rise, as well as periods when the market is overbought and beginning to turn downward. Using behavioral finance, a contrarian disposition, top-down econometric and bottom-up value analysis to confirm buy and sell signals, we seek to take advantage of oversold and overbought markets.

Even the most perfect company in the world cannot maintain upward price momentum in a severe market downturn. Unfortunately, most investors saw this all too clearly during the market collapse in September - November 2008. Virtually all market sectors sold off and prices plummeted on even the best companies. Likewise, 'irrational exuberance,' such as that seen with publicly traded internet companies during the late 1990's, will lift even the worst company to valuations that are unreasonable.

Using our trend-identification-with-confirmation approach to investing, our investment decisions are dictated by the market rather than an ideology or forecast. Once an upward or downward trend is identified, we can use scientifically tested and proven fundamental analysis to pick (1) stocks of companies that are undervalued and rising or (2) inverse ETFs of the most overbought sectors when they are declining.

2) FUNDAMENTAL VALUE INVESTING

When the market is rising, we advocate buying stocks that are selling at a discount to their intrinsic value. Our valuation method is most commonly associated with Benjamin Graham, known as the 'Father of Value Investing.' Mr. Graham wrote his seminal tome, 'The Intelligent Investor' in 1942, in the wake of the Great Depression. Mr. Graham's method of equity valuation features a significant margin of safety between the valuation of a company and its market price.

But simply buying cheap companies can be a 'value trap.' Those companies can stay cheap for years. Therefore, we add another element to our stock-picking arsenal that makes all the difference in our returns...

3) INDIVIDUAL STOCK PRICE MOMENTUM

We don't just buy undervalued companies when the market is rising and hold them hoping for their price to rise also. Using our proprietary 'Dynamic Value Investment' approach, we are more active in assessing our individual positions to take maximum advantage of market trends.

The direction of the general market as well as specific sectors are the primary force behind a company's stock price, but individual stocks must also have upward price momentum to be a candidate for our example system. Therefore, we combine technical price analysis with a fundamental measure of a stock's value to pick equities that are most likely to rise in price and generate significant profits.

Using this trend-identification system, our investment decisions are dictated by the market rather than an ideology or forecast. But our active approach should NOT be associated with day trading. By using longer term indicators, we find that overbought and oversold conditions generally occur 2-5 times each year. As the positions we hold reach a scientifically chosen take-profits level, they will be sold and not replaced. This allows us to reduce exposure as overbought and oversold conditions fade, which minimizes the potential for loss in our example portfolio.

RESULTS

The results of our example model portfolios demonstrate the ability of our investment approach to outperform market indices, mutual funds, and other investment newsletters. Since September 2004, our conservative Model Portfolio has beaten the S&P 500 by +150%*. And since May 24, 2006  to September 22, 2009, our Aggressive Portfolio has beaten the S&P 500 by an amazing+870%*. This is by far the highest return of any investment newsletter, according to the data provided by thee Hulbert Financial Digest.

To see more details of our RESULTS, click here. If you are ready to get started with a service that provides you with clear buy and sell signals, outstanding returns, credibility, and savvy insights into the market, then you are ready for IntelligentValue!

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