Volatile markets can feel confusing

Wild swings in the market can test the nerves of the average do-it-yourself investor, and even many professionals, particularly those who rely on mutual funds and lack direct experience in buying and selling stocks. 

We designed an investment strategy to take advantage of volatility

At Two Point Capital Management, we welcome volatile markets, because they are the best time and place to find investment opportunities. In fact, our clients tell us they anticipate the coming of a more active market with some enthusiasm.

Volatility is actually the norm in the stock market, and not the exception. So we’ve spent decades looking for the best ways to maximize opportunities during turbulent times, without taking undue risk. Our strategy is a proprietary, hybrid approach: Value+Quality™ makes use of important elements of several investment philosophies, including value, growth, and what used to be called “blue-chip” investing.

We look for bargains or “value,” but only in companies that we feel are sound, well managed, and poised to grow nicely over the long term. That requires knowing individual companies on an intimate basis. Investment managers who like to make “the big sector calls”—buy oil! buy coal! buy technology!—have a hard time navigating an up-and-down market; its unpredictability works against their strategy.

Uncertain how to proceed? Thinking of backing out of the market?

Now is not the time to sell your stocks. Now is the time to be reinvesting, perhaps in different companies than those you have held before. If you are invested in mutual funds, you may well be over-diversified during a volatile market.

These can be unnerving times for investors whose experience over the last several years has been one of steadily rising stocks. The true test of your strategy, just like courage or strength, is when the market is not so forgiving.

As a bull market continues, almost anything you buy goes up. It makes you feel that investing in stocks is a very easy and safe and that you’re a financial genius.

—Ron Chernow, author and historian, whose 2004 biography, Alexander Hamilton, winner of the inaugural George Washington Book Prize for early American history

Are we the right fit?

Most clients of Two Point Capital are looking for a relationship with a Chartered Financial Analyst® (CFA®), want an investment strategy they can have confidence in over the long term, and have $1 million or more in investable funds. Sound like you? We would welcome the opportunity to meet with you.

There is no cost or obligation, and we will never share your contact information with anyone.