Introduction to Omega Squared

Presentation for Individuals & Families

Prepared by: Aaron Soderstrom

Omega Squared Capital Management, LLC

Disclosures

This material is distributed or presented for informational or educational purposes only and should not be considered a recommendation of any particular security, strategy or investment product, or as investing advice of any kind. This material is not provided in a fiduciary capacity, may not be relied upon in connection with the making of investment decisions, and does not constitute a solicitation of an offer to buy or sell securities. The content contained herein is not intended to be and should not be construed as legal or tax advice and/or a legal opinion. Always consult a financial, tax and/or legal professional regarding your specific situation.

This material contains opinions of the author or speaker, but not necessarily those of Omega Squared Wealth Management or its subsidiaries. The opinions contained herein are subject to change without notice. Forward looking statements, estimates, and certain information contained herein are based upon proprietary and non-proprietary research and other sources. Information contained herein has been obtained from sources believed to be reliable, but are not assured as to accuracy. Past performance is not indicative of future results. There is neither representation nor warranty as to the current accuracy of, nor liability for, decisions based on such information. No part of this material may be reproduced or referred to in any form, without express written permission of Omega Squared Wealth Management.

Registered Representative Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC. Investment Advisor Representative Cambridge Investment Research Advisors, Inc., a Registered Investment Advisor. Cambridge and Omega Squared Wealth Management are not affiliated. The information in this presentation is confidential.

Meaningful Collaboration

Setting Ourselves Apart: Redefining Financial Advisory with Innovative Solutions

We Are

Navigating Your Financial Future with Confidence.

Truly active portfolio managers and thinkers.
Committed to deep analysis of financial markets.
Recognize that market work in cycles.
Persistent and diligent in our advice and investment management process.

We Are Not

Generic Advice for Generic Wallets: The Cookie Cutter Financial Advisor.

Beholden to pie chart investment strategies
Advisors who will tell you to 'stay the course'
Always bullish or always bearish; we let the market and economy dictate the appropriate actions
Salespeople disguised as asset managers

First Core Belief:

Avoiding large losses is the most important factor to long-term success.

Why are losses so important?

Because of the recovery needed to break even.

Have you ever herd the saying:

"It's time not timing that matters. Stay Invested."

Ask your presentor to learn why we think you are not being told the entire story about the risks of staying the course.

Learn More

Second Core Belief:

The financial markets work in cycles

Large losses in the markets occur around contractions in the business cycle.

We believe that markets work in cycles.

Notes

The market works in cycles, moving between periods of expansion and contraction. During expansionary periods, economic growth is strong, corporate profits increase, and stock prices tend to rise. This is often driven by increased consumer spending, low interest rates, and favorable government policies. However, these periods can also lead to excessive speculation and asset bubbles, which can ultimately lead to a market correction or recession. During contractionary periods, economic growth slows, corporate profits decline, and stock prices tend to fall. This can be caused by a variety of factors, including rising interest rates, high levels of debt, or external shocks such as a global pandemic. However, these periods can also create opportunities for investors to buy quality companies at discounted prices and potentially generate attractive returns over the long term.

Major Market Crashes Happen Around Recessions

Identifying a recession is not impossible because there are a number of indicators that can provide valuable insights into the state of the economy. Some of these indicators include GDP growth, unemployment rates, consumer spending, industrial production, and interest rates.

While it can be difficult to predict the timing and severity of economic downturns, there are many tools and resources available that can help identify potential warning signs and prepare for the impact of a recession.

Our Solution: Redefine the business cycle into six stages.

Using our data-driven economic framework, we redefine the business cycle by breaking it into six stages. By identifying the stage that we are in can help prepare us for what typically happens next in the business cycle.

Adding the business cycles stages to the S&P 500 Index

Performance Chart
With Stages

Performance amoung asset classes is cyclical

Our research, accumulated through scrutinizing the interaction between the business cycle and security returns over the last 50 years, provides overwhelming evidence that the cycle stages signal valuable clues that asset managers can significantly enhance performance. Our model provides insight into when to be defensive and offensive based on the economic environment defined by the stages.

In a cycle, there is a time to be offensive & a time to be defensive.

If you knew that a recession was around the corner, would you want to be defensive in your allocation, prepared for the volatility? That’s why we use our stages to prepare for a recession and mitigate losses.
Likewise, if you knew that a recession was about over and returns in the financial markets were poised for a rally, would you reallocate to take advantage of the possible upside?

The economy changes, so should your portfolio.

The cycle’s impact on performance is why we adapt our portfolios instead of remaining in a single buy-and-hold allocation.

Example of how a portfolio should shift in each stage. Each business stage is different, logically, each alloacation should be different as well.

Typical Risk Management & Risk Tolerance

Our Risk Management & Risk Tolerance

Examples of how we dial down risk (Not actual allocations)

Fully Invested
Slight Defensive
Defensive
Fully Defensive

The Aaron Soderstrom, Chief Investment Strategist

Omega Squared

124 S. Main St.
Suite 217
Keller, TX 76248

Phone: 817-550-0556
Cell: 972-746-6395

aaron@omega2capital.com
www.omega2wealth.com