Investment Strategy We first establish a minimum average annual rate-of-return objective based upon projected inflation rates, current income requirements and client risk-assuming capacity (emotional as well as financial). These factors are then set forth in a written investment framework, which gives us the flexibility to manage the portfolio on a day-to-day basis between regular client contact. Our investment decision-making process applies our Business Cycle, Valuation, Technical and Secular (slowly developing ideas) disciplines to determine asset allocation. These disciplines are based upon contrary opinion studies and are designed to overcome the natural emotional inclination to go along with the crowd. We utilize a broad array of indicators which have been quite useful in anticipating, rather than reacting to, major changes in the economy and capital markets.