When Others Sold on Tariff Fears, Dunham Bought
Dunham & Associates' Unemotional, Algorithmic Investment Approach—DunhamDC—Buys Fear and Sells Greed
SAN DIEGO, April 7, 2025 -- Dunham & Associates Investment Counsel, Inc. ("Dunham" or "Dunham & Associates") announces that it has increased its stock positions while most investors are selling. This move is the result of its flagship DunhamDC algorithm and investment strategy overlay being triggered by the latest market downturn.
On Friday, April 4th, 2025, DunhamDC issued two buy signals—one from the DunhamDC Global strategy and one from the U.S.-focused strategy—reflecting heightened investor fear across both domestic and international markets. This follows DunhamDC's buy trigger from Thursday, April 3rd.
"While others were selling based on fear, DunhamDC recognized an opportunity and bought," said Salvatore M. Capizzi, Executive Vice President at Dunham, and conceptual creator of DunhamDC. "This environment has created the emotional conditions the strategy was designed to respond to. DunhamDC is built to help investors stay disciplined when volatility rises, and sentiment emotions take hold."
DunhamDC follows the investment philosophy of "Buy Fear, Sell Greed,1" inspired by the principles of Warren Buffett and Benjamin Graham. By methodically increasing equity allocations in declining markets and reducing them during periods of market euphoria, DunhamDC can help investors avoid reactionary decisions driven by fear or greed.
For example, earlier this year, when equity markets reached new highs, a typical 60/40 portfolio governed by DunhamDC held just 27% in equities. As markets have declined, the model has systematically increased equity exposure—aiming to take advantage of lower prices during market downturns.
"DunhamDC is performing as it was designed to—reducing equities in overheated markets and increasing exposure when stocks trade lower," said Ryan Dykmans, CFA, Chief Investment Officer at Dunham, and creator of the Dykmans Curve (DC)—which powers the DunhamDC algorithm. "The market decline triggered our buy signals, reinforcing the algorithm's ability to remain unemotional during volatility while systematically positioning investment portfolios for potential upside."
DunhamDC is built on the belief that long-term investment success depends on discipline and process - not emotion. The overlay strategy is designed to provide a consistent and repeatable method for adjusting portfolio allocations across market cycles.
"No matter what happens in the coming days, DunhamDC continues its disciplined approach—buying more equities if the market declines further and selling them if the market rebounds significantly," added Mr. Dykmans. "This strategy isn't about weathering the storm; this disciplined strategy focuses on systematically increasing equity allocations during market declines, aiming to capitalize on lower valuations and potential long-term growth opportunities." To learn more about this innovative investment overlay, please visit https://www.dunham.com/FA/Pages/DunhamInsights.
About Dunham & Associates Investment Counsel, Inc.
Dunham & Associates Investment Counsel, Inc., with its affiliate Dunham Trust Company, is an accessible wealth management and trust firm that has been challenging the industry's thinking for nearly four decades. The company's differentiated investment strategies and approaches are designed to enhance the investment process by providing thoughtful solutions tailored to clients' needs, aiming to help clients navigate market complexities and work toward their financial goals. All investments involve risks, including the potential loss of principal.
Financial advisors can utilize Dunham's client service and asset allocation programs to optimize portfolio management based on client's needs. In addition to concierge back-office support, advisors can work with Dunham to create carefully constructed and balanced portfolios using a range of mutual fund strategies. The compensation of Dunham's sub-advisors is tied directly to the success of investments, reflecting the firm's commitment to accessibility, accountability, and fairness.
To learn more, please visit https://www.dunham.com/.
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