About iCM

We invest based on TRIED AND TRUE investment principles and the BELIEF that owning expensive and overvalued assets can be DEVASTATING. We attempt to AVOID this behavior at all costs seeking to find true investment bargains. These PRINCIPLES are implemented through a documented, repeatable INVESTMENT PROCESS... not just the hunches, gut instincts, "experience" or “Trust me, I know what I'm doing” thoughts of some Wall Street talking heads.

The price one pays to acquire an asset is the most important factor related to that assets future performance.  Our Motto is... Valuations Matter! 

Watch this short video for another example of valuations in action.

Data Source:  S&P, iCM Capital Markets Research

  Establish a baseline asset allocation based on the individual's risk tolerance and iCM's long-term view of capital markets.

  Baseline asset allocation is adjusted to reflect current market conditions.

                     We want to own less of assets that appear relatively expensive and more of those that look relatively inexpensive (i.e. offer a more attractive risk/return opportunity)

  Decisions on the structure of the portfolio are implemented with ETFs and/or mutual funds and reflect the desired asset class exposure based on iCM's current view of the market.  

  Positions are monitored on an ongoing basis to ensure continued alignment with iCM's market expectations.

Unfortunately, many investors observe performance and want to participate in assets that have already done well and produced high returns.  This is done without regard to what has created the performance... Inexpensive valuation.

As outsized gains are earned, the opportunity for future outperformance diminishes until the point that they are no longer attractive, or able to sustain the very result that drew investors in. 

Sadly, it is the tendency of investors to engage in herding behavior and many investors rushed in to an asset that had already done well, but was not poised to continue that result.

An example of this can be seen in the chart of calendar year returns for several different asset classes.  Very rarely is a specific asset class the leader for a long period of time.    

CALENDAR YEAR RETURNS

The chart below illustrates how often different styles rotate in market leadership over time and why style diversification may help to minimize portfolio volatility. In the chart below, asset class are ordered from top to bottom in terms of calendar year performance.

Source:  iCM Capital Markets Research, S&P, Russell Investments, Morgan Stanley Capital International, Barclays, Bank of America - Merrill Lynch, Bloomberg, Financial Times Stock Exchange,

S&P 500 represents an unmanaged index that measures the performance of 500 large capitalization companies traded on the NYSE, AMEX, and NASDAQ.      

Large Cap Growth is represented by the Russell 1000 Growth Index, which consists of those Russell 1000 Index securities with higher forecasted Growth rates.      

Large Cap Value is represented by the Russell 1000 Value Index, which consists of those Russell 1000 Index securities with lower forecasted Growth rates.      

Small Cap Growth is represented by the Russell 2000 Growth Index, which consists of those small capitalization securities in the Russell 2000 Index with higher forecasted Growth.       

Small Cap Value is represented by the Russell 2000 Value Index, which consists of those small capitalization securities in the Russell 2000 Index with lower forecasted Growth rates.        

MSCI EAFE is represented by the Morgan Stanley Capital International EAFE Index, an unmanaged index that measures the performance of developed stock markets in Europe, Asia and the Far East.      

MSCI EM is represented by the Morgan Stanley Capital International Emerging Markets Index, an unmanaged index that measures the performance of large and mid capitalization stocks in emerging markets.     

Fixed Income is represented by the Barclays US Aggregate Bond Index, an unmanaged market-weighted index that consists of investment grade corporate bonds, mortgages and US government issues with maturities of at least one year.      

High Yield is represented by an unmanaged index sponsored by Barclays, that measures high yield, fixed rate corporate bonds with at least one year until final maturity.       

Commodity is represented by the Bloomberg Commodity Index, an index that is calculated on an excess returns basis and tracks commodity futures price movements.      

Small Cap Core is represented by the Russell 2000 Index, and unmanaged index that measures the performance of small capitalization stocks represented by the bottom 2,000 stocks in the Russell 3000.      

Cash is represented by the B of A ML US Treasury Bill 3 Month Index, an unmanaged index of US Treasury securities maturing in 90 days that  assumes reinvestment of all income.      

REITs is represented by the FTSE NAREIT All Equity REITs, a free-float adjusted, market capitalization-weighted index that tracks the performance of US Equity REITs.       

Diversified Portfolio is composed of 48% of the S&P 500 Index, 38% of the Barclays US Aggregate Bond Index, 12% of the MSCI EAFE Index, and 2% of the B of A ML US Treasury Bill 3 Month Index.

We believe the information provided here is reliable but should not be assumed to be accurate or complete. References to specific securities, asset classes and financial markets are for illustrative purposes only and do not constitute a solicitation, offer or recommendation to purchase or sell a security. Please note that investments in foreign markets are subject to special currency, political, and economic risks. Index performance returns do not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Data supplied by Morningstar, Barclays Capital, MSCI, BOA/ML, Standard & Poor's & Russell Investments.  Investments offered by Integrated Capital Management, Inc. are not deposits or obligations of, or guaranteed or endorsed by any bank or depository institution, nor are they insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the National Credit Union Association or any other agency. All investing involves risk of loss, including possible loss of principal amount invested. The performance information does not reflect the deduction of advisory fees payable to iCM and any other expenses for services not covered by the advisory fee that an investor may incur, which will reduce a client’s return. iCM charges one comprehensive fee for investment management services, which includes investment research and mutual fund and ETF due diligence and asset allocation decisions.  Custody fees and trading expenses may add to overall expenses depending on the client custody arrangement. Past performance is not a guarantee of future results.