Monday, September 17, 2012

Trendocracy: 401k Protection From Market Collapse

One of the most important investment strategies today that is critical to your success is knowing when to preserve and accumulate your wealth in bullish and bearish market conditions.

If you are like most investors, insightful information at key points in the last five years would have given you less volatility and more money in your retirement plan today.? But most investors are too busy, or don?t completely understand the underlying stocks in their?? mutual funds, to monitor key trends in all market sectors.

As a client you will be alerted to changes in the risk level of the retirement funds you own. This communication allows you to concentrate on your career and family life, while maintaining control over your financial future.

Our managers follow a disciplined approach in order to keep your retirement account in sync with the primary trends of the markets by:?


  • Starting with the short and long-term direction of the stock market based on an analysis of the forces of supply and demand.?

  • Getting a reading of which sectors and asset classes are going up because large investors are buying them, and which sectors and asset classes are going down because large investors are selling them.

Our clients know when to PRESERVE WEALTH by raising cash in the early stages of a stock market decline, which is a better alternative to riding the stock market up; then losing large amounts of money like people did the last two years.

Our clients know when to ACCUMULATE WEALTH by taking the cash they accumulated close to the market top and reinvest it in the best mutual funds in their retirement plan when the market moves back up.

There are two alternatives to investing your retirement money now.??

1.? You can Buy-And-Hold the mutual fund options in your retirement plan, add money whenever it becomes available, and hope that just before you want to quit working, you will have enough money to retire.? Unfortunately, since 2000 this strategy has proven to be problematic with the up and down gains and losses of the S&P 500.

?2.? The second alternative is based on the academic theory of Asset Allocation, which uses historical asset class returns to predict where you should invest your retirement money now and in the future. Of course as with any investment past performance is no guarantee of future performance. The allocation is then reviewed periodically to make sure your money is divided up in the percentages the computer suggested.?

Asset allocation programs are missing the tactical side of advice. Computers cannot give advice. The "Cruise Control" element of asset allocation has proved very costly in the last three years. Perseverance and long term planning is great but blind adherence to a strategy that keeps failing is not.

Our solution is real-time information on the specific mutual funds available in your retirement plan. When the markets change to ?taking money away from you mode??you need to get WEALTH PRESERVATION information to help you make better decisions. This is the change in your investment behavior over the last three years that would have given you less volatility and more money in your retirement plan today.

For more information on how to take control of your 401(k) or any other self-directed retirement plan please check out my website.

Disclaimer: This writing is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation regarding any securities transaction, or as an offer to provide advisory or other services by Charles Towne Capital, LLC in any jurisdiction in which such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction. The information contained in this writing should not be construed as financial or investment advice on any subject matter. Charles Towne Capital, LLC expressly disclaims all liability in respect to actions taken based on any or all of the information on this writing. Please see a more detailed disclaimer at the bottom of this page.

Source: http://trendocracy.blogspot.com/2012/09/401k-protection-from-market-collapse_17.html

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