The market is near an all-time high while the government is in more debt than we have ever seen. There’s no telling when the market will correct again, but sooner or later it will. Taking prudent steps can help protect your portfolio when the market corrects. The market will crash again, will you be protected? Most everyone wants to be in the market while it’s doing well. Likewise, most everyone wishes they were out of stocks when things turn around.
Fixed annuities and CDS are safe, but may lack needed liquidity and may not provide enough return to meet important financial goals. So what’s an investor to do?
We have recent and severe examples of the market doing well only to see years of gains quickly erased. Remember the painful tech wreck in the 2000s when the market dropped by 48% and then financial collapse of 2008 when the market fell by 56%?
Investors need to know that there are managed models that focus on limiting losses when markets significantly decline. Let’s call them “Risk Adverse” Models and they may be just the solution you need to protect your portfolio.
We know the 2000s financially as “the lost decade”. So many lost so much because during a market correction many don’t sell their equities soon enough and others often wait too long to reinvest back into equities as the market recovers.
History teaches that it is prudent planning to take steps to design your portfolio to weather the storms. Investors who can act quickly may be able to protect themselves from significant downward market movements. The market will crash again, will you be protected?
Some Financial Planners today work with managed “Risk Adverse” models. These models work to maximize investor gains, but MUCH more importantly they have strategies in place to offer protection during significant down markets.
The are many benefits to using “risk adverse” models. In addition to being able to sleep better knowing an experienced pro is watching your money so you don’t have to, the portfolio goals are to:
- Eliminate investor emotion
- Get out of the way when the market is showing deterioration
- Potentially participate during early stages of market recovery
In a complicated and fast moving world a managed “risk adverse” strategy may be a good solution for those that like to have money in the market but are not skilled or disciplined enough to do what the manager will do for them. Invest the time now to investigate your options. For additional information please contact Steve Shyman at www.wilsave.com or 312-953-2097.
Investment Advisory Services offered through Virtue Capital Management, LLC (VCM) an SEC registered investment advisor. Wilsave and VCM are independent of one another.