Market Target Strategy (MTS)

Strategy Overview

The Milwaukee Company’s Market Target Strategy (MTS) is a rules-based investment strategy that combines the risk-management techniques of Modern Portfolio Theory with The Milwaukee Company’s “Market Trend Indicator” (“MTI”).  The MTS model portfolio allocations are periodically adjusted as needed to suit the current set of market conditions as determined by MTI and the core Consumer Price Index (CPI).  MTI determines the condition of the stock market by comparing the relative performance of the U.S. stock market to that of the total U.S. bond market over the prior 12 months.  Core CPI (a measure of inflation) determines bond market conditions by looking at core CPI’s rate of change over the prior 12 months, as higher rates of inflation are often precursors to rising interest rates.

Components

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  • Well-suited for a balanced investment objective.

  • Infrequent trading.

  • Higher expected tax efficiency.

Model Portfolio Weights

Components

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  • Broad Asset Class Funds

MTS utilizes broad asset class Exchange-Traded Funds (ETFs) to provide diversified exposure to significant components of the global market. The amount allocated to these ETFs is determined by the combined readings of MTI and core CPI.

 

  • Market Trend Indicator (MTI)

MTI tracks the relative performance of U.S. stocks over U.S. bonds. A bear market MTI indication would call for a greater allocation to bonds, while a bull market MTI indication would call for a greater allocation to stocks.

 

  • Core Consumer Price Index (CPI)

AdjuCore CPI is utilized as a measure of inflation that closely correlates to changes in interest rates. Each given level of inflation indicates an increase or decrease in a corresponding asset class best suited for a particular level of inflation.

The Milwaukee Company℠ is a tradename of Estate Counselors, LLC. The information provided herein is believed to be correct and has been obtained from sources that we consider reliable, but we do not guarantee that this information is accurate or complete.  All expressions of opinion reflect our judgment at the present time, but are subject to change. Nothing found herein is intended to be a substitute for personal investment advice. The investments discussed herein are risky in nature and involve a substantial risk of loss, and we do not in any way warrant or guarantee the results you will experience.

Good Company for Your Investments™

Phone: (262) 238-6980

Fax: (262) 238-6999

414 N Main St, Thiensville, WI 53092, USA

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