Welcome
Tonge Investments is a Registered Investment Adviser, located in the State of Maine, specializing in managing assets in the securities markets. We work with our clients to articulate individual goals and risk tolerance. We then devise a personalized investment plan using a variety of strategic tools:
- Exchange Traded Funds (ETFs)
- Common Stock
- Bonds
- Long/Short
- T24 Income
Our mission: to provide consistent investment returns without exposing our clients' portfolios to unreasonable risk.
- We invest with a conservative, long-term approach designed to increase asset value over time.
- We offer you a custom-tailored portfolio based on your hopes and plans, your income needs, and your risk tolerance.
- We view investing as a process – not an event. Your individual goals form the basis of the investment strategy that we develop together.
We encourage you to browse through our pages and call us with any questions, comments or suggestions.
History
Tonge Investments is a Registered Investment Advisor, licensed in the State of Maine, specializing in portfolio management for individuals, trusts, retirement plans, and endowment funds. Rick Tonge (pronounced Tonj) first entered the business in 1974 as a third generation broker, working for his father's firm. In 1996, he moved from the brokerage to the adviser side of the business so he could work in a fiduciary capacity for clients.
Tonge Investments employs a unique research method, based on technical analyses, in order to identify investment opportunities. Technical analysis focuses on the tug-of-war between supply and demand in the stock market, discovering the relative strength of assets. Relative strength, derived through technical analysis, is the most notable attribute of profitable investment portfolios.
Process
We will talk with you. We will ask questions. We will strive to know what your unique situation is, eventuating in a needs profile and a risk profile. Once we arrive at a common understanding, we will use our experience to develop the appropriate mix of assets to enhance your financial status.
Fees
Management Fees are invoiced at the beginning of each quarter and are based on the total market value of the portfolio. The quarterly fee is one-fourth of the following annual rates:
- 1.00% on the first $500,000
- 0.70% on the next $500,000
- 0.50% on the balance
- T24 only is 2.00%
Portfolios less than $100,000 are subject to a minimum fee of $1000 per year. Two or more related portfolios may be combined for fee calculation. A 50% discount is provided for not-for-profit organizations.
In what follows, we're trying to be brief. The descriptions may sometimes seem arcane and confusing. Indeed, the financial industry as a whole may seem mysterious. We're in business to bring some measure of transparency to the world of investment. Please call us, or come in and see us, if we can be of service to you.
ETF
Exchange Traded Funds provide perhaps the best opportunities for sound, safe investment that have evolved in recent years. You can learn about ETFs by viewing our video (LINK). Our ETF portfolio comprises both domestic and international ETFs in order to diversify your holdings.
Stock
This is a portfolio of 20-25 individual common stocks. Technical analysis and Relative Strength are used to select each stock. These two research tools allow us to move seamlessly between these investment styles (growth and value) and capitalization (small, medium and large cap).
Long/Short
A very aggressive portfolio using an ETF to be 100% long or 100% short in the US stock market. We have a specific research tool based on supply and demand that guides the investment decisions.
Bonds & Other Income
A ladder portfolio of Treasury, Corporate and Agency bonds or ETF bond portfolio as used to create income. Our T24 portfolio is designed to produce income for IRA accounts.
T24
This special portfolio utilizes both an ETF and a very conservative strategy to generate monthly income at about 2% per month. As market conditions change, we may or may not be able to apply this process each month. However, every time we do, it will get about 2% for the 30-day period. Since the income is all taxable, we encourage clients to select this for their IRA or other retirement assets.
T24 is a unique investment process designed to increase the return and reduce the risk in investment accounts by creating income.
Characteristics
- In an up market or a flat market we will create income at approximately 2% per month.
- In a down market more income is created but it is used to offset the market decline. This offset usually amounts to more than one-half of the decline. Your portfolio loses only half as much as it might have by not using the process.
Safety
- This process is less risky than owning any of the major indexes such as the Dow, S&P 500 or Nasdaq.
Net Results
- More income and less risk for your portfolio.
How It Works
- The T24 process is best used in tax-free accounts, such as an IRA, 401K or non-profit endowment. This is due to the taxable nature of the income created.
- Call us!, we will be happy to explain the process and all other features to you.
Current
Get the PDF version of this newsletter here.
The Tonge Telegraph
July 2009
Calm, Not Placid
Summertime . . . and the markets are relatively calm, never mind that the S&P 500 is having one of the best quarters in decades. The run-up since mid-March has been profitable. Comment on the Street and elsewhere has it that the economy and the markets have seen the worst of this downturn. But the forecast? Murky.
Last week the Federal Reserve decided to keep interest rates at current levels. We will not see increased borrowing costs anytime soon. But the Fed doesn't see any real growth in the economy anytime soon either. Many economists have already signaled that we should emerge from recession towards the end of this year. They have also indicated growth during next year will most likely be minimal—maybe one percent, maybe two. Still, that's growth, and a lot better than last year.
We consumers are being blamed for part of the low growth predictions. We are saving money at a higher rate than we have in years. Last month saw an increase in the income figures for Americans—mostly owing to the tax adjustments from the stimulus package. But we didn't splurge on a new microwave or even a toaster. We stashed it in a savings account. This is a good sign even if the economists don't appreciate it. We spend freely when times are good, but we have the ability to pull back when they are not. The upshot, however: corporate earnings will suffer in the months ahead.
This may explain, in part, why corporate insiders, CEOs and others, have been selling recently. Insiders have to register whenever they want to buy or sell shares in their company. Sometimes an increase in selling activity is due to estate plans or something else unrelated to the insiders' perception of their companies' prospects. Still, these people are some of the most aggressive pursuers of money in our country—that's how they got to be insiders—and they don't generally sell an asset that they think is going to be increasing in value anytime soon. Let's call it 'interesting' that they're unloading some shares just now. Granted, like the rest of us, they have debts and college educations to pay for. They also tend to have a large percent of their assets tied up in the corporation they work for. Maybe it's a move to diversify assets. Whatever the reason, they are selling, and it does not go unnoticed.
This may help explain why my indicators are now urging caution. From lows in the teens back in March, the indicator moved above 74% by mid-May. I'm now seeing numbers in the low 60's, meaning there's been a lot of selling and a lot of stocks have moved lower even though the broad indexes have not deteriorated very much. A year ago, such indicators might have translated into a 1000 point drop in the Dow average, an extraordinary event. What's happening now is closer to the norm. If the selling continues, I would expect to see the indexes moving lower. I am in a decidedly defensive mode, which makes relaxing on the beach both difficult and necessary.
Archive
Please Note:
The information contained in the Tonge Telegraph Archive is for historical research or reference only. This information is dated material and should not be considered current.
2009
2008
2007
2006
2005
2004
2003
2002
Contact
Tonge Investment Services
22 Common Street
Waterville, ME 04901
Phone: 207-877-7762 or 800-546-7762
Fax: 207-877-7868
E-Mail: rstonge@gwi.net
