Dorsey, Wright & Associates (DWA) is an RIA and a leading adviser to Wall Street and investment managers for more than 25 years. We license underlying indexes for the four PowerShares DWA Technical Leaders Portfolio (Fund). They collectively have more than $1.6 billion in assets.We choose investments based on a top-down, objective approach. We first apply price studies of major market indexes in an effort to measure overall market risk. Then we compare the relative price momentum at either a sector or ETF level. Our goal is to make investments only in industry sectors or ETFs that are in favor and avoid ones that are out of favor.Our firm’s research focuses on the relationship between supply and demand. The cornerstone of our research is the Point and Figure price charting method. Popularized by Charles Dow in the late 1800s, Point and Figure charts are an organized way to chart supply and demand for any particular stock. We believe that Point and Figure studies provide cues as to when to buy and sell and can help identify the likelihood of stock outperformance.Our investment strategy on the Covestor platform is co-managed by Tom Dorsey, President and co-founder, as well as Tammy DeRosier, Executive Vice President.Tom is the author of several books based on the Point and Figure technique. He frequently speaks to audiences worldwide on topics related to the stock market, technical analysis and momentum investing.Tammy joined the firm in 1988. She is the Chief Operating Officer, overseeing day-to-day functions at DWA. She is co-author of Tom’s books, “Tom Dorsey’s Trading Tips: A Playbook for Market Success”, and “Commodity Strategies: High Profit Techniques for Investors and Traders.”
A Q&A with the investing pro, author and new Covestor manager.