If consumption drives the economy, shouldn't the most powerful brands be driving your investment portfolio?

Invest in the global consumer, via the most relevant, recognizable brands. Invest in what you know.

Step #1: Build a solid CORE

The definition of “Core”:

“The central or most important part of anything.”

FROM AN INVESTMENT PERSPECTIVE, THE “CORE” EQUITY ALLOCATION SHOULD BE TIED TO THE PRIMARY DRIVER OF THE ECONOMY. SINCE INVESTING IS A PROXY INVESTMENT INTO THE ECONOMY, THE CORE ALLOCATION SHOULD BE ANCHORED TO THE DRIVER OF THE ECONOMY. CONSUMER SPENDING.

We live in the U.S. and the bulk of our investments are invested in U.S. stocks and U.S. bonds. That’s called a “home bias” and over the long-term, our bias towards U.S. companies has offered a strong investment outcome. Why? American innovation and American Consumerism. These 2 important themes have allowed the U.S. to become the largest and most productive economy in the world. As an investor, we have a responsibility to allocate to the primary driver(s) of every economy in which we invest. In fact, this is likely the first decision we should make when building a portfolio. For U.S. investors, there’s no better core allocation that one tied to consumerism through the most innovative and disruptive B2C and B2B brands.

#2: Know what you own and why you own it.

If it was good enough for Peter Lynch, famous investor from Fidelity who ran Magellan Fund, #1 fund in its category during his tenure.

Look at your monthly spending

If you love the company and it’s products/services, are fiercely loyal and regularly spend your money on the brand, shouldn’t you own the stock as an investment? Investing in what you know and love is commonsense yet most investors do not connect the dots back to their investment portfolio. Even worse, there’s never been an investment strategy dedicated to the most relevant & recognizable brands. That’s why we created the Alpha Brands Consumer Spending Index. Now there’s a dedicated universe of 200 highly valuable brands to follow and the Index gets updated each December. As consumer preferences change, so too does the 200 brands Index. Here’s some additional information on the Index, how it was created, and how the look-back performed.

Click the image to open the Brands Index Brochure

Click the image to open the Brands Index Brochure



#3: Hedge your spending by investing in the aspirational brands & disruptive innovators.

Example - If you invested $100k in Ferrari on its IPO date of October 12, 2015, you’d have $250k today, on February 19,2019. That hypothetical gain accounts for roughly 60% of the $250k purchase price of the average Ferrari. Investing in the most relevant, innovative brands can offer a great hedge against the spending you do on your favorite brands.

Example - If you invested $100k in Ferrari on its IPO date of October 12, 2015, you’d have $250k today, on February 19,2019. That hypothetical gain accounts for roughly 60% of the $250k purchase price of the average Ferrari. Investing in the most relevant, innovative brands can offer a great hedge against the spending you do on your favorite brands.

Here’s how to get started and invest in Brand Power:

I created the Alpha Brands suite of investments in partnership with a Registered Investment Advisor called Accuvest Global Advisors. Now anyone can get access to this powerful and intuitive investment strategy.

I’m always available to chat and we can identify the best investment solution for you based on your goals, needs and objectives. If you work with a Financial Advisor, let’s all get on the phone and chat about how a brands-focused strategy fits into your overall portfolio.

Investment options:

  • DYNAMIC Brands SMA - Separately managed portfolio - 25-50 stocks, a best-ofthe-best brands approach. Risk managed with maximum flexibility to adapt to changing market conditions. Can hold up to 40% cash, swap into defensive brands, hold additional protective assets in times of high market stress. Ideal for individual investors and Financial Advisors who want their money manager to assess market risk and manage the portfolio according to the current risk environment.

  • DYNAMIC Brands Fund - Via a sub-advised mutual fund called Rational Dynamic Brands. Same characteristics as above. http://rationalmf.com/funds/rational-dynamic-brands-fund/

  • CORE brands SMA - Separately managed portfolio of ~35 stocks and equal-weighted between the highest ranking growth (operating kings), value (sustainable yielders) and momentum leaders. Fully invested at all times. Ideal for individuals and Financial Advisors who prefer to remain fully invested and are more long-term focused investors. Core brands clients are comfortable riding through all market volatility regimes.

  • CORE brands Offshore Fund - for non-U.S. investors with similar market preferences as the core brands SMA.