Investment Philosophy

Quest Financial Services Inc. uses a long-term approach to help clients reach their retirement goals incorporating both a top down strategic perspective and simultaneously implementing balanced portfolios of no-load mutual funds of the best fund managers and ETFs (exchange traded funds) to participate in the most pertinent sectors and geographies at the lowest possible expense.

From a strategic perspective we have developed portfolios that take advantage of the positive trends nationally and globally while also using defensive investments to protect values from long term deterioration of the US currency. At Quest Financial Services Inc. we constantly monitor the investment newsmakers, research the products, and attend conferences to meet the fund managers and stay abreast of the latest developments in financial planning. It is very clear that much of the growth around the globe is a direct result of stimulus packages that various countries have been spending on infrastructure such as in the US. Other parts of the world such as the emerging market countries and the BRICs (Brazil, Russia, India & China) are doing well because of the export of natural resources, energy and manufactured products and services.

Simultaneously the European zone is struggling with slow growth and significant sovereign debt. Unemployment is high in many countries, tax revenue is down, and many governments are printing currencies to pay for their stimulus plans and social entitlements. The high sovereign debt and promise of increased taxes are lowering growth expectations for the near term. With all the central banks printing currencies, the threat of increased inflation over the longer term is also a major concern. Many of our clients remember the slow growth and inflation, known as stagflation of the 1970s. On top of above financial issues, we need to recognize the aging of the baby boomers and their demand on healthcare. Technology will also be an important parameter to help improve productivity, communication and raise the living standard for many populations around the globe. All the above are driving the ‘new normal’ financial environment as coined by Bill Gross of PIMCO. For the next few years investments will have to deal with volatility, slow growth and various disruptions to the financial systems.

Over the short term of 1 – 2 years, the economic environment is going to be influenced by both political and balance sheet forces. Although corporate earnings are positive and are forecasted to improve against low comps, most companies and individuals are in a “delevering” process to pay down the large debt and credit card balances run up before the last recession. Going in the opposite direction are the government balance sheets as GDP deficits (gross domestic product), stimulus packages and social programs are being expanded. The US government spending is increasing from 21% of GDP upward to 33%. High unemployment of nearly 16% in the US and 20% in some European countries are restraining growth. Companies are not hiring because individuals do not have the income to spend, so the vicious circle perpetuates. State and local governments are cutting back due to lower tax revenue. Politicians are all focused on short term programs to get re-elected and looking to increase spending and taxes on anything they can at the expense of future financial stability.

One of the few absolute factors we know is that taxes at all levels are going up. Income taxes, capital gains, and transfer taxes (gift and estate) are all going up to fund the massive increase in federal spending and unfunded entitlements such as medicare, social security and healthcare. There is even talk of implementing a VAT (Value Added Tax) which is just a national sales tax.
At Quest Financial Services Inc. we have developed investment portfolios that address all of the above parameters and are weighted to the risk tolerance of each of our clients. As we navigate our way through this ‘new normal’, we have flexible components to offset inflation, highly correlated to commodities, energy and natural resources, diversified to global growth areas and provide income to stabilize the volatility. On the domestic side, our portfolios are highly diversified with the large, medium and small capitalization companies, real estate and alternative investments. At Quest we constantly monitor these portfolios and make discretionary adjustments as appropriate. We have implemented a series of alerts and stop loss limits to protect against any significant down market corrections. Capital preservation is paramount as more and more of our baby boomer clients are in or approach retirement. These triggers minimized our clients to a 10% loss in this past recession compared to the 57% loss in S&P market.

Finally, it should be noted that at Quest Financial Services Inc., we eat our own cooking as the expression goes. It means that all officers are fully invested in these same portfolios as we recommend to our clients. As we communicate to all our clients, our priority is to live, eat and sleep with the changes in investments and taxes 52 weeks a year. Can you devote this much energy and input to your investments? Or do you have other priorities? As your financial advisor, Quest can give you the time and peace of mind to focus on your more important priorities and goals.

If interested in seeing what Quest Financial Services Inc. can do for you, please contact us for a complimentary consultation.

Quest Financial Services Inc. is a Registered Investment Advisor in the state of Massachusetts.  To view our Form ADV and Firm Brochure (Part 2A of Form ADV) on-line, go to www.adviserinfo.sec.gov and type in:  Company name: Quest Financial Services, Inc.  IARD/CRD#:  132940

You may also call our offices at 888.323.3456 for a copy.

Privacy Policy:  The privacy policy of Quest Financial Services Inc. is consistent with all prior years in that we will continue to maintain absolute confidentiality of all client data.  No information is ever shared or sold to outside parties, under any conditions.