Geared to win.

The EGOER Wealth stock market strategy.

By implementing our very purposeful, non-emotional, data-driven methodology, we believe we will outperform the S&P 500 year after year while offering significant downside protection as well.

Here are the tools and metrics we use in our stock market strategy, and which set us apart from so many others:

A PEG ratio is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share (EPS), and the company’s expected growth. A PEG ratio greater than 1 means the stock is relatively expensive, whereas a PEG ratio lower than 1 means a stock is below its “fair value”. When we initiate a buy recommendation, most of the time the PEG (price/earnings to growth) ratio of the subject equity will be 1 or below. However, on occasion we will recommend a stock with a PEG above 1 if we believe there is a special situation justifying the higher ratio and valuation. Peter Lynch, who was a guru hall of fame fund manager, effectively used this valuation metric with his average returns of 29% per year during the 13 years he ran the Fidelity Magellan fund.
We have our own proprietary method for overweighting and underweighting sectors. A sector that we believe is very attractive is overweighed in our portfolio by 10% to 15%. Conversely, a sector that we believe is average or unattractive is underweighted by 10%, or simply not part of the portfolio at any given time. We do try and spread our portfolio over as many sectors as possible to achieve proper diversification. These sectors (and related industries) include but are not limited to: Information Technology, Financials, Health Care, Consumer Discretionary, Consumer Staples, Industrials, Energy, Utilities, Materials and Telecommunications Services.
We will rebalance the portfolio every quarter. However, if there is significant movement in the portfolio causing what we believe is excessive unbalancing to occur (i.e., if. in our discretionary judgment, a particular sector becomes excessively overweighted or underweighted prior to the end of the quarter), then we will email you the necessary buys or sells to rebalance the portfolio to our desired objective for any given period.
At times we will use ETFs (exchange traded funds) to properly diversify the portfolio to meet our sector weighting objectives if we cannot find a suitable individual equity in that sector. We will screen them to assure they are “best of breed” and have the lowest expense ratio among their peers.
We look at many analysts (e.g., Zacks Investment Research, Ned Davis Research Group, Jefferson Research, Citigroup Investment Research, Jefferies, Morgan Stanley, Raymond James, UBS, etc.). We then only buy a particular stock if the overall analysts’ consensus is bullish.
We like dividends! For an average holding period of 1 year, dividends accounted for 27% of total returns for the S&P 500 since 1940. If we increase the holding period to 3 years, dividends account for 38%; at 5 years it increases to 42%; over a 10-year period it rises to 48%; and with a 20-year holding period dividends account for some 60% of total returns. Therefore, if one of the equities we are selecting pays a dividend of 3% or more, we give consideration to this in its weighting. However, we will not let the fact that a particular equity pays a dividend influence our decision on whether or not to sell that equity. Our sell strategy is strictly adhered to and it’s one of the drivers that we believe really sets us apart. We are not afraid to sell and take profits. Profits are good. There will always be another equity to replace it and we will wait patiently for that to happen. We promise, the market will always present new buying opportunities, guaranteed!
This matters and we use it. This tells us how many days it will take to cover all the shorts, based on the average daily trading volume of a particular equity, and the total outstanding number of short shares there are. The higher the number of days, the more shorts there are in proportion to the average outstanding number of shares. If it’s significantly higher than its peers, we will not buy that equity even if all our other factors signal a buy.
If we really love a particular equity, yet that equity’s PEG ratio is slightly above a 1, then we will still buy that equity, but only if we can find another equity in that same sector so the average between the two equities has a PEG of 1 or below. We may use ETFs to achieve this as well.
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. We take this into consideration to make sure that our overall portfolio’s volatility as compared to the S&P 500 is not overly excessive.
We adjust our stops when a position goes up. This means that once we make a purchase of an equity, a sale of that entire position will trigger if it were to pull back by 12.5% at any given time. This has been proven through quantitative data analysis to significantly increase returns and decrease loses over any given period of time.

For example, you buy a stock at $100. The stock falls to a price of $87.49 (which is right below our 12.5% trailing stop benchmark). The trailing stop would kick in and automatically sell the stock at $87.49, preventing further loss in that stock. We would keep those proceeds in cash until we decide to buy something else with that cash.

Do note that for certain special situation positions, we will not always implement a stop loss recommendation.

History has proven that May, June and July are great buying months, as most of the market’s yearly pullbacks or losses occur during these months. Late November and December have proven to be the best selling months, as most of the market’s yearly gains occur during these months. To those that say you can’t time the market, we disagree!
We will make put and call recommendations to bring income into the portfolio if we can achieve at least a 1% premium from these options. For example, if you purchase a stock for $25 per share, consider selling a covered call option that generates a premium of at least an amount equal to the annual dividend yield. If you can get additional income equal to or greater than the dividend yield and at least equal to 1% of the purchase price of the stock, then we will consider selling the call at a 10% higher price than the stock is currently trading at. If the stock is called away, you will have earned a 10% return plus a call premium of 1% (not too shabby). If the stock isn’t called away at the option expiration date, then you will get to keep the 1% call premium and then can yet again sell the covered call using these same metrics.
We do not let the “tax tail wag the dog.” We will take gains when our strict matrix of data and methodologies signals to take gains. We are not a tax savings model. We are a “make money” model! However, at times, we will include very specific and actionable tax tips to minimize tax exposure.

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At EGOER Wealth we’re different. But just what IS an EGOER?

EGOERs don’t just sit and wait. We take action when opportunity manifests.

EGOER Wealth is a natural extension to our professional backgrounds, education and experience as well as our EGOER approach to life.


Our Investment Performance

Spectacular Performance in a Matter of Months

Our returns since inception date of June 14, 2016 to April 30, 2017, were 19.31% vs. S&P 500 returns for the same period of 14.88%!

Our Beta and Our Methodology

Our methodology is geared to create a portfolio with less risk at any given time than the overall S&P 500.

We Aren’t Afraid to Have a Cash Position

We aren’t afraid to sell our positions when there’s profits to make, plus our covered calls with varying expiration periods and premiums influx additional income.

Get the Full Play-by-Play

When you subscribe to our Stock Picks Alert, we’ll give you the full play-by-play. Namely, we’ll tell you exactly how we are investing in the positions listed here.