As Markets Decline, Dunham Buys Stocks From Fear-Driven Investors

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 /PRNewswire/ -- 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 4^th, 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 3^rd.

"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/.

Media Contact:

JConnelly for Dunham
[email protected]

Disclosures:

This communication is general in nature and provided for educational and informational purposes only. It should not be considered or relied upon as legal, tax or investment advice or an investment recommendation. Any investment products or services named herein are for illustrative purposes only, and should not be considered an offer to buy or sell, or an investment recommendation for, any specific security, strategy or investment product or service. Always consult a qualified professional or your own independent financial professional for personalized advice or investment recommendations tailored to your specific goals, individual situation, and risk tolerance.

Investors should consider the investment objectives, risk factors, charges, and expenses of the Dunham Funds carefully before investing. This and other important information is contained in the Fund's summary prospectus and/or prospectus, which may be obtained by calling (800) 442-4358. Please read prospectus materials carefully before investing or sending money. Investing involves risk, including possible loss of principal.

Different types of investments and/or investment strategies involve varying levels of risk, and there can be no assurance that any specific investment or investment strategy will be profitable for a client's or prospective client's portfolio, thus, investments may result in a loss of principal. Accordingly, no client or prospective client should assume that the information presented serves as the receipt of, or a substitute for, personalized advice from Dunham & Associates Investment Counsel, Inc. or from any other investment professional.

Past performance may not be indicative of future results. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. There may be economic times where all investments are unfavorable and depreciate in value.

"DunhamDC ("DunhamDC") is a proprietary algorithm of Dunham & Associates Investment Counsel, Inc. ("Dunham") that seeks to mitigate sequence risk, which poses a threat to an investor's returns due to the timing of withdrawals. The algorithm employs what Dunham considers to be a pragmatic strategy, generally making incremental increases to the equity allocation when global stock market prices decrease and decreasing it when global stock prices increase. The U.S. variant of DunhamDC generally increases equity exposure as domestic stock prices decrease and reduces equity exposure when domestic stock prices increase. Rebalancing is initiated based on the investment criteria set forth in the investors application and is further influenced by the DunhamDC algorithm."

DunhamDC allocation changes are made only if they result in an allocation value shift at the fund level of 1% or greater of total account value. This includes if non-Dunham fund investments are in the Dunham account and the allocation value shift per fund is more than 1%.

DunhamDC uses an unemotional, objective, systematic approach. The algorithm does not use complex formulas and is designed to create a consistent process with limited assumptions based on historical data.

DunhamDC may make frequent purchases and redemptions at times which may result in a taxable event in the account and may cause undesired tax-related consequences.

Dunham makes no representation that the program will meet its intended objective. Market conditions and factors that influence investment outcomes are subject to change, and no program can fully account for all variables and events. The program requires making investment decisions based on factors and conditions that are beyond the Account Owner's and Dunham's control.

DunhamDC is NOT A GUARANTEE against market loss or declines in the value of the account or a timing strategy. Investor may lose money.

Asset allocation models are subject to general market risk and risks related to economic conditions.

DunhamDC has a limited track record, with an inception date of November 30, 2022.

DunhamDC US has a limited history, with an inception date of July 1, 2024.

The Sub-Adviser receives a fulcrum fee, which will vary based on the Sub-Adviser's performance against the benchmark. The Sub­ Adviser is rewarded when performance exceed the benchmark and is penalized when performance is short of the benchmark. Some Sub-Advisers receive minimum compensation regardless of whether or not an established performance benchmark is met or exceeded.

Dunham & Associates Investment Counsel, Inc. serves as adviser (the Adviser) and distributor of the Dunham Funds.

¹ Warren Buffett Quotes on Life, Success, & More, Phil Town, December 21, 2022, https://www.ruleoneinvesting.com/blog/how-to-invest/warren-buffett- quotes-on-investing-success/

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SOURCE Dunham & Associates Investment Counsel, Inc.