Most investors can’t afford a major portfolio loss.
Active management can provide protection in volatile markets. Regular buy & hold strategies are often highly correlated with the market and with each other. Alternatively, active strategies can provide extra downside protection and useful diversification.
Consider this:
-In 2008, the S&P 500 was down 37%, whereas certain active managers were up 17% to 2%, even after fees.
-To recover from it’s maximum drawdown of 50.95%, the S&P 500 took 37 months. A simple 60/40 stock and bond portfolio in an IRA, Roth or 401(k) plan took even longer. And that’s IF someone didn’t make any changes.
-To recover from a loss, you need more returns to be made whole:
*A 10% loss requires a 11% return
*A 30% loss requires a 42.86% return
*A 50% loss requires a 100% return
Active investing strategies help you dodge these types of losses, so you can protect your assets and grow your wealth faster.
Like you, we’re in it for the long haul.
CrossPoint Wealth is an independent, fee-only investment advisory firm, which utilizes a comprehensive approach to investment management and retirement planning.
This approach allows us to eliminate potential conflicts of interest that may arise when a firm or advisor is owned by a parent company or who offers proprietary, product-based investment solutions.
We provide objective, unbiased financial guidance based strictly on the needs, values, objectives, and goals of each client.
We can only do that by delivering honest results. We are fiduciaries and 100% objective. We operate and advise clients without bias. We have transparent, fee-only compensation.
If you would like a review of your current portfolio or corporate retirement plan please contact us at info@crosspointwealth.com
You can also schedule a call with someone from our team here.
