The Pacific Financial Group, Inc. does not cling to any single narrow methodology of investment analysis and decision making.
We combine various classical approaches into a methodology we call “Rational Analysis.”
Our method of “Rational Analysis” uses many methods but focuses on:
- Economic Analysis of the United States
- International Economic Analysis
- Fundamental Analysis
- Technical Analysis
- Quantitative Analysis
The basic economy of the United States of America is the platform from which all domestic investing is launched. Additionally, it is a powerful force to be reckoned with on the international front. We pay close attention to what is going on domestically so that we may understand the “atmosphere” in which we are investing. If the United States economy is growing, money supplies are expanding, interest rates are falling, inflation is low, consumer confidence is high, inventories are in line, and measures of production are growing sustainably. Thus, the probability of growth in the foreseeable future is therefore enhanced. If, however, the environment is negative, the near term future may be more questionable.
International Economic Analysis
The analysis of the economies of foreign countries is essential before investing therein. We limit our investing overseas to those countries that are currently expected to outperform the United States economy. Before taking a position with a target country, we satisfy ourselves that a country has the economic climate to encourage the current growth we are expecting.
Fundamental Analysis is the economic research of such factors as interest rates, gross domestic product, inflation, unemployment, and inventories used as tools to predict the directions of the economy. Our economic analysis consists of daily tracking of over 30 economic variables that are material to the current market condition. Constant attention is paid to how the political climate may affect market performance. Detailed analysis of corporate profits and their impact on long-term market movement is constantly reviewed.
Technical Analysis is accomplished by consistently focusing on price trend identification and forecasting. Secondly, by performing momentum studies we can target sectors and asset categories with the greatest potential for growth. Historical analysis blended with experience, assists in pattern identification.
Quantitative Analysis consists of evaluating investment decisions to ensure that expected return outweighs potential risk. It also includes monitoring market risk by using statistical models in order to identify opportunities and avoid probable pitfalls. Finally, in predicting future market growth, Time Series Modeling is utilized. Time Series Modeling is advanced computer driven analytic and econometrics processing applied to data derived from sequential time periods. Modeling is based upon numeric values that occur over time.