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Moderate Growth Strategy

The Moderate Growth Strategy is an actively managed strategy designed to primarily utilize sector and broader market indexes which have the greatest opportunity for market gains, but also with a focus on managing downside market risk.  The strategy is designed for each selected index to be used during periods of lower risk for that particular index – which we believe allows us to capitalize on the opportunity for gains with reduced risk.

When risk increases for a given index, we rotate out of that index and move to another, more optimal index, and apply the same criteria in the next selection. If no index is able to meet the short-term criteria, the strategy uses money market funds as the safest alternative to minimize risk, until the selection criteria are met again. The strategy is constructed such that it operates as described during all market conditions. This technology, which is driven by a computerized, formula-driven, mechanical model, allows us to be guided without any emotional component.

Since August 3, 2015, the Moderate Growth Strategy has outperformed the S&P 500 Index with by taking far less risk than the S&P 500.  Risk is measured by Beta, a mathematical measurement, and drawdown, the amount of loss from a peak to a trough.  Risk is also measured by the amount of time the strategy had stock market exposure vs. the amount of time money market funds were used.

An investor who is risk averse, but who wants market exposure on a more selective and targeted basis might want to consider using this strategy. Investors in this strategy should have a time horizon of at least 3 years. All investments carry some degree of risk. Clients using this strategy might lose some, or all, of their investment principal.

This strategy considers the use of stock market indexes when it gets the signal to enter the market and goes to cash when it gets the signal to exit the market. This strategy uses Guggenheim mutual funds, which have no “front-end” or “back-end” load sales charges, no transaction fees and no short term redemption fees. The strategy does not use individual stocks or bonds, bond funds, leverage or shorting.

*Performance reflected above is net of the highest fee (1.5%) and includes the reinvestment of interest and dividends. Please refer to the footnotes and disclosures at the end of this page for additional important information about this graph.

*Performance reflected above is net of the highest fee (1.5%) and includes the reinvestment of interest and dividends. Please refer to the footnotes and disclosures at the end of this page for additional important information about this graph.

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