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 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.

WINTER 2012

GLOBAL INVESTMENTS
Stocks are experiencing elevated levels of volatility which is often associated with market corrections and occasionally significant declines.  International markets have experienced the most pressure.  The overall technical structure of the market has turned somewhat bullish.

WORLD ECONOMY
The Data coming out on the global economy poses serious challenges.   European banks may be experiencing liquidity challenges.  Unemployment in the U.S. remains elevated but improving.

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.  As developed country economies continue to reduce debt levels, deflation in stocks, real estate and commodities may continue. Despite current monetary policy, inflation is likely to be held in check until National Income and Capacity Utilization have increased.

U.S. RESIDENTIAL HOUSING
It appears housing may be stabilizing in some markets.  Prices are not expected to start recovering any time soon. 

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.