"History has shown that over time the best rates of return can be achieved by investing in the stock market."

For the average investor, the stock market has historically offered the best opportunity to enhance investment savings over time. Many factors come into play when evaluating how to get the best return on your investment dollar.

Inflation continually undermines the value of all investments. Annual inflation in the United States between 1981 and 2007 has been around 2.6%*. That means that any investment must achieve an after tax return of at least 2.6% per year on average just to keep even. If an investor is holding savings in cash, under his bed or in a savings account that is earning less than 2.6% a year, he is losing value. *Source: OECD Economic Outlook No. 78

Money Market Funds, CD's, T-bills and similar savings/investment arrangements have little to no risk, but also offer minimal upside potential. Deducting inflation, the average investor in this type of investment would only realize lower real earnings and still have to pay income taxes at high marginal rates.

Investing in Corporate Bonds and other forms of debt instruments offers a better return over time than savings or money market vehicles. However, risk now enters the equation, as does the need for specialized knowledge necessary to make such an investment.

The Stock Market offers the opportunity of achieving rates of return over time that exceed both bonds and money market investments. Investing in stocks, however, is associated with a greater amount of investment risk. Investing in the stock market requires the greatest amount of expertise, skill, and effort in selecting the best companies to own while minimizing the associated level of risk.

Multi-Capitalization Stocks, the flexibility of KING’s Multi-Cap Equity portfolios offer opportunities to achieve an exceptional rate of return. Historically, small-cap, mid-cap, and large-cap stocks have had long but varying cycles of relative outperformance, which may be followed by periods of extended underperformance. For example, over multi-year periods, the small-cap stock universe may outperform the large-cap universe, and vice versa. A properly diversified portfolio reduces the capitalization risk and allows an investor to maximize long-term returns.

KING’s Multi-Cap Equity Portfolio includes stocks from every market segment: small-, mid-, and large-cap. Since there are no capitalization restrictions in maintaining a multi-cap portfolio, we can screen a larger universe and select stocks from a diverse group. With thousands of stocks from which to choose, new opportunities constantly present themselves. This multi-cap flexibility can provide a portfolio in which earnings are growing faster than those of the average companies without extreme valuations.

Through disciplined, bottom-up research, KING looks for companies that appear to be selling for less than their true worth. This multi-cap flexibility can provide a portfolio of companies selling at significant discounts to their private-market value or to their historical valuation, or whose earnings typically grow faster than those of the average company, yet without extreme valuations. KING invests in these companies with the belief that the stock market will eventually realize their true market value, causing their stock prices to rise.

Identifying companies with stock that can be acquired at a bargain price and that have the potential for excellent growth and increasing profits is where real skill, hard work, and experience is required. Over our history, this is an area where King Investment Advisors has excelled.