Dightman Captial Group
We manage adaptive investment strategies for individual investors, as part of a comprehensive planning environment, designed to protect capital in sustained market contractions and grow capital during market expansions.

Market & Economic Summary

  

Dightman Capital believes one of the key to success in today's environment is to remove entrenched investment biases and implement an adaptive investment process and execution ability. 

The following is our opinion of near-term market and economic conditions.

SPRING 2012

GLOBAL INVESTMENTS
After a very strong rally in Q1, which was a continuation from Q4 2011, stocks have come under selling pressure.  A normal market correction should be expected but investors may want to be on guard for a more sustained market decline given the fragile nature of the current environment. 

WORLD ECONOMY
The Data coming out on the global economy still poses serious challenges.   The debt crisis in Europe could eventually pose liquidity challenges.  Unemployment in the U.S. remains elevated but appears to be improving somewhat.

INFLATION DATA
We believe broad inflation will remain stable for goods and services measured by the Consumer Price Index.  There are risks of elevated prices in select categories like education, healthcare and energy.  Despite current U.S. monetary policy, inflation is likely to be held in check until National Income and Capacity Utilization have increased.  As developed country economies continue to reduce debt levels, deflation in stocks, real estate and commodities may continue.

U.S. RESIDENTIAL HOUSING
It appears housing may be stabilizing in some markets but price recovery may be slow. 

PLANNING
New conversion rules for ROTH IRAs allow high income households an opportunity to fund this unique tax treatment retirement account.

Creating Retirement Income

Generating Income
We spend the first part of our life accumulating assets and earning income. When retirement arrives we shift to a strategy designed to generate income from our investments to support our lifestyle. Moving from the accumulation phase to the distribution phase creates additional challenges and may require a change in the way investors manage their investments. The most recent bear markets of 2000-2002 & 2007-2009 are a good reminder of just how challenging financing a comfortable retirement can be.

The added complexity created by dollar cost spending, or drawing down on savings, raises the stakes for making good financial decisions. Once in retirement you cannot count on long-term averages to correct mistakes.  While some investors will shift to conservative investments, the returns they generate may not be sufficient to support a desired lifestyle.  If inflation rises a conservative investor's purchasing power may be significantly impacted.

Some key risks to consider when planning your retirement income include:

Longevity Risk - We are living longer, healthier lives then previous generations.

Inflation Risk - Long-term our money loses purchasing power.

Asset Allocation Risk - There is a balance to strike between our income goals, how our investments are allocated and market conditions.

Withdrawal Risk - The amount of money you plan to withdraw, and your strategy for withdrawals, will have a direct impact on how long your money will last.

Health Care Expense Risk - Longer life spans, rising medical costs, decreases in medical coverage, and possible shortfalls with government programs are likely to pose a significant challenge to retirees.

Our investment services focus on managing risk by lowering volatility and potentially improving compounding.  When your money is working effectively, the retirement risks listed above may become less of a concern.