Steady at the Core. Flexible by Design.
A disciplined investment approach built to pursue opportunity, respond to risk, and keep the bigger picture in view.
Markets Are Efficient. People, Less So.
We believe markets are generally efficient over long periods of time. But over shorter stretches, prices do not always move in perfectly tidy ways—mostly because people do not either.
Investors can become overly optimistic, overly fearful, slow to react, or very eager to follow the crowd. Those behaviors can create trends that persist longer than expected.
One of the best-known examples is momentum, often called relative strength. Even Eugene Fama, whose work helped shape the Efficient Market Hypothesis, has recognized momentum as one of the theory’s most significant challenges.
In other words: markets may be efficient, but they are still populated by humans.
Momentum, Without the Jargon
Momentum investing is built around a fairly simple idea: investments that are showing sustained strength may continue doing so for a period of time.
That does not mean trends last forever. They do not. But rather than trying to predict every market turn, momentum looks for evidence that a trend is already in place.
At Olivia Wealth Management, we measure momentum through relative strength. This means comparing investments in two ways:
How they are performing relative to other investments
How they are performing relative to a broader market benchmark
The first helps us identify areas showing stronger leadership. The second helps us recognize when stepping back may be more prudent—because being the strongest investment in a falling market is still being in a falling market.
Why Fundamentals Still Matter
Price strength alone does not tell the whole story.
Strong trends are often supported by a healthy fundamental backdrop: improving business conditions, growing demand, solid earnings, or an environment that supports higher prices.
That is why our process does not rely on a single signal. We combine technical analysis, fundamental research, and disciplined portfolio construction to develop a more complete view.
No crystal ball. No investing by gut feeling. Just a repeatable process designed to keep emotion from taking the wheel.
How Our Strategy Works
Our primary investment approach combines two complementary pieces:
The Core Portfolio
A diversified, long-term allocation designed to provide broad market exposure and serve as the steady foundation of the portfolio.
The Dynamic Rotation Portfolio
A rules-based allocation that looks for strength across asset classes, sectors, and individual investments. As conditions change, it can shift between strategies focused on growth and those intended to place greater emphasis on preservation.
Together, these form our Core + Dynamic Rotation Strategy.
The goal is not to chase every market move or avoid every decline. It is to remain invested with purpose, adapt when the evidence changes, and build a portfolio capable of playing both offense and defense.
Because markets change. A thoughtful strategy should be prepared to change with them.
*Investing involves risk, including possible loss of principal. No strategy can guarantee a profit or prevent losses in declining markets.
Dynamic Rotation
Leans toward preservation when market risk rises
Rotates toward areas of strength as conditions improve
CORE + DYNAMIC ROTATION
The core portfolio provides a diversified, long-term foundation. The dynamic rotation strategy adds flexibility, using a disciplined, rules-based process to respond as market leadership and risk conditions change.
Together, they create an approach designed to participate in growth, adapt through uncertainty, and help keep one difficult market season from derailing the bigger picture.
Think of it as a steady anchor—with room to adjust the sails.
Is Your Portfolio Built for Changing Tides?
The information found on this description page has been prepared without regard to any particular investor’s investment objectives, financial situation, and needs. Accordingly, investors should not act on any recommendation (expressed or implied) or information in this report without obtaining specific advice from their financial advisor and should not rely on information herein as the primary basis for their investment decisions. Neither the information nor any opinion expressed shall constitute an offer to sell or a solicitation or an offer to buy any securities or commodities mentioned herein. This document does not purport to be a complete description of the securities, commodities, market, strategy or developments to which reference is made. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. Investors should consider this strategy’s investment objectives, risks, charges and expenses before investing. The relative strength strategy is NOT a guarantee. There may be times where all investments and strategies are unfavorable and depreciate in value. Relative Strength is a measure of price momentum based on historical price activity. Relative Strength is not predictive and there is no assurance that forecasts based on relative strength can be relied upon.