What if everything you have been told about investing is WRONG?
Hard to believe? Consider what happened to your portfolio during the market meltdown in 2008. Were you ever advised to take any action to stop losing money? Or were you told to just "buy and hold" and hope that the market would eventually go up?
The fact is most investors have lost far too much money by doing what they were told to do. Following so-called conventional advice like buy-and-hold just doesn't work in the real world because it leaves investors exposed to the full risk of the markets -- and potentially devastating losses during market declines.
The best way to make money is not to lose it during major market declines!
Does it make sense to keep money in an investment which is likely to lose 20% or more of its value?
Of course not. Yet many financial advisors and investment managers advocate a “buy and hold” strategy, recommending that investors keep their money invested even during a bear market.
The problem with a buy-and-hold strategy is the large losses incurred during bear markets. If you lose 33% of the value of your retirement account during a bear market, you would need a return of 50% just to get back to breakeven.
|if the DECLINE is||It takes the following GAIN to return to breakeven|
These are the type of losses that will force a retiree to dramatically change their lifestyle and live on less money than they planned for. In certain market conditions, the “buy and hold” method of investing is irresponsible, in our opinion. We seek to be better stewards of your assets.