OracleDC™ Challenges the Status Quo in Asset Management

News provided by

Dunham & Associates Investment Counsel, Inc.

Feb 27, 2024, 09:00 ET

Inspired by Warren Buffett, Dunham's flagship investment strategy seeks to revolutionize conventional approaches

SAN DIEGO, Feb. 27, 2024 /PRNewswire/ -- In the wake of the recent S&P 500 highs, Dunham & Associates Investment Counsel Inc. ("Dunham") has introduced a new webpage for its flagship investment strategy, OracleDC™, showcasing how advisors and investors can discover the groundbreaking investing approach that seeks to navigate the complexities of market volatility without emotionally-driven distractions.

OracleDC utilizes a proprietary algorithm named the "Dykmans Curve," developed by Ryan J. Dykmans, CFA, Chief Investment Officer of Dunham. It aims to disrupt traditional investment approaches by Buying Fear and Selling Greed.

OracleDC was inspired by Warren Buffett's timeless advice, "Be fearful when others are greedy and be greedy when others are fearful." ¹

Buffett's own wisdom was influenced by the insights of Benjamin Graham, regarded as the "father of value investing."² In his 1949 work The Intelligent Investor: A Book of Practical Counsel (Harper & Bros.), Graham illustrated the emotional unpredictability of the stock market through the character of "Mr. Market."

Mr. Market exhibits fluctuating emotions, occasionally becoming overly optimistic and inflating stock values beyond their intrinsic worth. Conversely, he can also become gloomy and fearful, leading to the undervaluation of stocks below their fundamental value. OracleDC was conceived to leverage the swings in Mr. Market's sentiments on behalf of investors.

"Following Benjamin Graham's philosophy, Warren Buffett advised prudent investors to exit stocks amid widespread optimism and enter at favorable prices amid widespread pessimism," said Ryan J. Dykmans, CFA, Chief Investment Officer of Dunham. "OracleDC™ puts their wisdom into action that may provide stability and mitigate sequence risk for investors over the long term."

This innovative approach seeks to identify potential opportunities for investors to enter the market at lower prices during periods of fear and exit when optimism drives prices higher.

OracleDC portfolios offer diversification, flexibility and customization, allowing advisors and clients to align with specific risk tolerances and investment goals based on the clients' risk profiles.

"OracleDC strategically sells stocks as the market climbs and buys during declines. Simply put, the strategy holds more stocks at market bottoms and less at market peaks," said Salvatore M. Capizzi, CEPA, Executive Vice President of Dunham. "This approach also aims to minimize sequence risk and potentially speed up recovery times, which makes OracleDC truly distinctive, because it is the opposite of what most strategies do."

To learn more about OracleDC, explore accessibility options, and receive regular strategy updates, please visit here.

About Dunham & Associates

Dunham & Associates Investment Counsel, Inc. is an accessible, full-service wealth and trust management firm which has been challenging the industry's thinking for nearly four decades. The company's differentiated investment strategies and approaches are designed to strengthen the investment process with the goal of securing the best possible outcome.

Financial advisors can utilize Dunham's client service and asset allocation programs to help optimize their practice. The firm's innovative approach to fees promotes the firm's commitment to accessibility, accountability, and fairness.

To learn more, please visit https://www.dunham.com/.

Media Contact
JConnelly for Dunham & Associates
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This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.

Investors should consider the investment objectives, risk factors, charges, and expenses of the Dunham Funds carefully before investing. This and other important information is contained in the Fund's summary prospectus and/or prospectus, which may be obtained by calling (800) 442-4358. Please read prospectus materials carefully before investing or sending money. Investing involves risk, including possible loss of principal.

Past performance may not be indicative of future results. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. There may be economic times where all investments are unfavorable and depreciate in value.

OracleDC ("OracleDC") is a proprietary algorithm of Dunham & Associates Investment Counsel, Inc. ("Dunham") that seeks to mitigate sequence risk, which poses a threat to an investor's returns due to the timing of withdrawals. The algorithm employs what Dunham considers to be a pragmatic strategy, generally making incremental increases to the equity allocation when global stock market prices decrease and decreasing it when global stock prices increase. Rebalancing is initiated based on the investment criteria set forth in the investors application and is further influenced by the OracleDC algorithm.

OracleDC uses an unemotional, objective, systematic approach. The algorithm does not use complex formulas and is designed to create a consistent process with limited assumptions based on historical data.

OracleDC may make frequent purchases and redemptions at times which may result in a taxable event in the account and may cause undesired tax-related consequences.

Dunham makes no representation that the program will meet its intended objective. Market conditions and factors that influence investment outcomes are subject to change, and no program can fully account for all variables and events. The program requires making investment decisions based on factors and conditions that are beyond the Account Owner's and Dunham's control.

OracleDC is NOT A GUARANTEE against market loss or declines in the value of the account or a timing strategy. Investor may lose money.

Asset allocation models are subject to general market risk and risks related to economic conditions.

OracleDC has a limited track record, with an inception date of November 30, 2022.

Dunham & Associates Investment Counsel, Inc. serves as adviser (the Adviser) and distributor of the Dunham Funds.

Dunham & Associates Investment Counsel, Inc. is a Registered Investment Adviser and Broker/Dealer. Member FINRA / SIPC. Advisory services and securities offered through Dunham & Associates Investment Counsel, Inc.

¹ Warren Buffett, "Buy American. I Am," published in The New York Times on Oct. 16, 2008. https://www.nytimes.com/2008/10/17/opinion/17buffett.html
² Dustin McKissen, "Warren Buffett's tribute to a legendary investor reveals 3 secrets to living an extraordinary life," published by CNBC.com on May 10, 2019. https://www.cnbc.com/2019/05/10/billionaire-warren-buffett-tribute-to-investor-teaches-how-to-live-a-successful-and-happy-life.html