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Dunham's Investment Strategy in Action

In an era where market volatility sends investors into a panic, Dunham 26 Associates Investment Counsel, Inc. stands out by taking an alternative route. Recently, the firm revealed that it had boosted its stock positions while many others were hastily divesting their assets. This calculated move is the outcome of their proprietary algorithm, dubbed DunhamDC, which evaluates market trends and investor sentiment.

DunhamDC operates on the premise of 'Buy Fear, Sell Greed.' By analyzing market conditions, the algorithm generates buy or sell signals based on fluctuations in investor sentiment. Most notably, on April 4, 2025, DunhamDC issued two significant buy signals—one based on a global strategy and another focusing on U.S. markets—reflecting a broad wave of fear influencing investors. As such, while ordinary investors reacted to anxiety by shedding stocks, Dunham saw a lucrative opportunity to invest.

Salvatore M. Capizzi, Executive Vice President at Dunham, emphasized the advantage of this unemotional, algorithm-driven approach. He stated, "While others were selling based on fear, DunhamDC recognized an opportunity and bought." This sentiment underlines DunhamDC’s role in helping investors maintain discipline during turbulent times and avoid knee-jerk reactions.

The strategy aligns closely with the investment philosophies of venerable figures like Warren Buffett and Benjamin Graham, which advocate for buying when others are fearful and selling during periods of excessive optimism. This systematic approach allows DunhamDC to navigate persistent volatility by strategically increasing equity allocations when markets dip and reducing them when markets peak.

Interestingly, earlier in the year, when markets reached their zenith, a typical 60/40 portfolio that adhered to DunhamDC principles allocated a mere 27% toward equities. As the market has since declined, DunhamDC adjusted its strategy accordingly, increasing equity exposure to capitalize on lower prices.

Ryan Dykmans, Chief Investment Officer at Dunham, pointed out that the algorithm fulfills its intended purpose, saying, "DunhamDC is performing as it was designed to—reducing equities in overheated markets and increasing exposure when stocks trade lower." This relentless discipline enables the investment portfolio to chase potential upside amid declining market conditions.

DunhamDC has emerged as a consistent strategy founded on the principle that emotional responses can jeopardize long-term investment success. By continuously evaluating portfolios to maximize growth opportunities and minimize losses, DunhamDC provides a reliable framework for making timely investment decisions that are sound and systematic.

The firm's steadfast commitment to this well-defined plan reassures investors amid market instability. Moving forward, DunhamDC will persist in its disciplined methodology: it will purchase additional equities if market conditions continue to decline while selling off investments if the markets rebound significantly.

Dykmans reflected on the larger strategy, stating, "This isn’t merely about weathering the storm; it’s about systematically increasing equity allocations during downturns to capitalize on lower valuations and potential long-term growth opportunities." With such a robust method, Dunham continues to challenge traditional thinking in wealth management and aims to guide clients towards their financial aspirations with confidence.

About Dunham & Associates Investment Counsel, Inc.

Dunham 26 Associates, along with its affiliate Dunham Trust Company, has been at the forefront of accessible wealth management and trust services for close to four decades. Its innovative investment strategies are designed to mitigate risks and enhance clients' financial experiences, adapting to the complexities of the marketplace. Dunham’s team of financial advisors enhances portfolio management by tailoring solutions to meet individual client needs, reflecting a commitment to accessibility and fair practices.

For more information on DunhamDC and its offerings, visit Dunham's website.