| Posted On January 5th 2021 | Posted By Admin

Our update for December 2020, hopefully, finds you well.  What a wild year!  So many unprecedented events and responses to those events happened this year. During times of uncertainty and high stress, it's our belief that it is best to invest using a Checklist or partner with someone who invests with a Checklist.  

We believe that if you are not investing with a written checklist then you really are speculating.  For our managed accounts, we only invest in companies that meet our Checklist.

Some of the items on our checklist are-

• Rising Quarterly Earnings
• Rising Cash Flow
• An All-Time Low Valuation
• High Liquidity ratios  

Here are a few of the companies that met our checklist in Q4 2020 that we invested our clients managed accounts in and why. (We are not able to mention specific securities because that could be construed as a recommendation and our advertising compliance advisor has cautioned us against that)

Companies That We Have Invested Our Managed Accounts In
 

• An E-Learning University 
• A PPE, Industrial, and Hospital clothing maker
• A Genetic testing company that has pivoted to Covid testing for tremendous cash generation
• A Small Business Lender 

Each of these met our checklist and also had either a net of cash forward or current P/E’s of 4 or less. 

These are all long term holds in our client's portfolios.  

We manage our client accounts through the custodian of Charles Schwab.  We only have investment authority over our client accounts.  Here is an update on our actual performance of 3 accounts after fees that have been managed using our Checklist Based strategy for more than a year.  

Managed Accounts Actual Performance

3 Accounts That We Have Managed For Longer than 1 Year using our Checklist Based Strategy.  (All Net of Fees)

Corporate Account                                                                             +125.69%  
S&P 500 ETF with dividends during the same timeframe           +27.94%

Pension Account                                                                                  +60.42%
S&P 500 ETF with dividends during the same timeframe             +49.06%

Roth IRA                                                                                               +70.81% 
S&P 500 ETF with dividends during the same timeframe           +30.37% 


*All of our managed accounts using our Checklist based strategy for over 1 year, are outperforming the S&P 500 IVV ETF which includes dividends reinvested

If you are interested in learning more about our strategy or about discussing our service you can review our attached presentation and book a call at the link below.  

https://www.checklistwealthmanagement.com/checklistwealthcall

Observations

In 2001, I read the book The Fourth Turning: An American Prophecy - What the Cycles of History Tell Us About America's Next Rendezvous with Destiny

It discussed that the next wave due for the United States from 2000-2030 was an increasing amount of authoritarianism.  I remember dismissing this until this spring when freedoms started being stripped away rapidly in the name of our collective safety.  Those freedoms have returned in some states and in others they have still yet to return.  An example of business authoritarianism that exists in California still today-Costco, Home Depot, Walmart and Target, etc. have the freedom to have 1,000 plus shoppers inside their store at any one time, yet a local gym that has 30,000 square feet of space can't even have 1 customer at their location at any time.
I saw very up close how different states are handling things when 2 weeks ago I took a trip to Florida from California. It felt like I stepped off a time machine to 2019 when I stepped off the plane and went to an indoor restaurant.  

What was once considered a conspiracy theory last March is coming true as the talk of Digital Vaccine Passports is now looking like they are coming true in 2021 as Government-backed Airline after Airline are saying they will be requiring digital vaccine passports for travel. What also used to be a conspiracy theory of there being an International World Government is looking more true as the World Economic Forum and Time Magazine, to name a couple are openly talking about The Great Reset on their websites. Klaus Schwab, the Founder and Chairman of the World Economic Forum, has even written a book about it entitled "Covid-19-The Great Reset" available on Amazon.  The spaghetti graph on the World Economic Forum site here https://intelligence.weforum.org/ (you have to create a login to see the graph) really shows just how much thought has been put into "The Great Reset", "The 4th Industrial Revolution" and many aspects of the future by the World Economic Forum Team and their members that pay their $628,000 annual partner membership dues.  

The scientific method calls for the continual questioning of previously held notions with a new hypothesis to move science forward. That hypothesis is tested to see if it is true. Instead in 2020, we’ve evolved into a type of science where questions and a new hypothesis are being made are met with shaming, censorship, and dismissals.  Many brand new acronyms and buzzwords have also emerged and are being used by wealthy and powerful people affiliated with the Great Reset in the media and in interviews. You may have heard them recently. Words and phrases like stakeholder capitalism, inclusive capitalism, public-private partnership, and Build Back Better are really code words for the Great Reset and for more top-down central planning and surveillance. What they mean are the Government intervening more, thereby shaping more of who the winners and losers are in business through compliance, new laws, fewer freedoms, new rules, and new initiatives. However, many times when there is top-down planning and government intervention there are unintended consequences.  Those unintended dislocations can also lead to more interventions and different consequences.  Overnight industries or companies (mostly small businesses so far) may be wiped out unless they comply or because they were greatly impacted by new government laws or ordinances. The pressure on businesses in 2021 to institute or comply with the new digital vaccine passport system and surveillance measures or be shut down by the government, could be the next trend in government-to-business authoritarianism.

As an Investment Advisor for our clients, we must be aware of these potential big trends and plans, as they may substantially impact many companies and industries. Whether you agree with the Great Reset plans or not, it is very important to understand what these initiatives are as many titans in business and governments are jointly aligned and openly planning to implement them.  An astute investor should be aware of what the Great Reset plans are, so they can invest with the wind potentially at their back.  

While we still invest using a Checklist, knowing these major trends are now upon us helps us in our investment decisions and allocations for our managed accounts.  We are adding new client accounts and would happy to serve you with our Checklist-Based Strategy. If you would like a presentation overview of our Checklist-Based Investment strategy then reply back to this e-mail and I will send it to you. If you would like to schedule a meeting to discuss our services, you can book a call at the link below. Thank you. Let me know if you have any questions.

https://www.checklistwealthmanagement.com/checklistwealthcall

Thank you.

Sincerely,

Matthew Recore
President
Checklist Wealth Management Inc.
info@checklistwealthmanagement.com
916-389-2953
2398 Fair Oaks Blvd #8
Sacramento, CA 95825                    CRD #144824


Actual Portfolio Performance Disclosure

Recore Growth Investments Inc. Doing Business As Checklist Wealth Management Inc. ("CWM") is a Registered Investment Advisor. Information presented herein is for educational purposes only and does not intend to make an offer or solicitation for the sale or purchase of any specific securities or specific investments. Investments involve risk and unless otherwise stated, are not guaranteed.
Readers of the information contained in this letter or report should be aware that any action taken by the viewer/reader based on this information without working with us directly is taken at their own risk. This information does not address individual situations and should not be construed or viewed as any type of individual or group recommendation. Be sure to first consult with a qualified financial adviser like us prior to implementing any securities, investments, or investment strategies discussed.
Any performance shown for the relevant time periods is based upon accounts managed by Recore Growth Investments Inc. or the investment manager prior to and/or after forming the RIA firm. The sample accounts performance is the result of the application of the Recore Growth Investments Inc. investment process and checklist-based investment strategy. The sample accounts are a corporate account, a pension account, and a Roth IRA account.  There are other accounts managed by the advisor that did not use the checklist-based investment strategy. The performance of one or more of those accounts that didn’t use the checklist based investment strategy, over this time period, were materially different.  Portfolio performance is shown net of our highest advisory fee of 2% which is the highest fee charged by Recore Growth Investments Inc. Performance results of CWM shown include the reinvestment of dividends and interest on cash balances where applicable. The data used to calculate the portfolio performance was obtained from Hamilton Software using GIPS methodology as described in the CFA Institute standards. The time period of actual performance was at least 1 year. We recognize that may not be enough time to be able to fully account for the performance of a strategy as compared to an index ETF that includes dividend reinvestment.  The performance calculations have not been audited by any third party. The actual performance of future client portfolios may differ due to the timing related to additional client deposits or withdrawals and the actual deployment and investment of a client portfolio, the reinvestment of dividends, the length of time various positions are held, the client’s objectives and restrictions, etc. Our goal though is to have most every one of our clients invest at least a portion of their portfolio in our checklist-based investment strategy because we believe that if you are not investing with a checklist then you really are speculating.  
Benchmarks: The accounts performance results shown are compared to the performance of the IVV ETF that is based on the S&P 500 with dividends reinvested for that time period. Index results that include reinvested dividends are greater than index results that do not include reinvested dividends. The S&P 500 was chosen for comparison as it is generally well recognized as an indicator or representation of the stock market in general and includes a cross-section of equity holdings. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE RESULTS