Why you need to be protected while in the stock market…, Brexit what?
I have this conversation all the time with everyday people who are investing for their retirement or to just make some extra money. Let’s just put it in an asset allocation “fund” of some kind to let it grow. That’s all most people know and that’s why the general public will not have enough money to retire, EVER! There is no fund that averages the market average of 7.75% yearly and I feel sorry for people who think that is even remotely possible. Wake up America and realize we have to change what we are currently doing that just doesn’t work.
Here is what the Britain exit (Brexit) of the European Union did to our market. I took a snap shot of the education portion of the Hurley Investments group. It is almost 7 million and yes we did lose. How much? Well the S&P 500 lost 3.6% today and we lost 0.38%. YES we made up 90% of the downward movement.
Why am I sharing this? I know portfolios that lost the full 7% from last night’s futures trading and others that lost a full 5% today. This could be the start of a 20% correction or more. I feel sorry for those who were complacent and did nothing to protect their hard earned money. Every once in a while people aren’t willing to pay for protection. Why? We are at all-time highs and the risk at highs is to the downside. We are 4 years overdue for a correction. Valuations are stretched and I want to never watch a portfolio loss 40% in a year much less 3% in a day. If people only knew how much the pay for funds through fees, hidden fees, management fees, commissions, 1201b fees, and taxation they would gladly pay for active management.
Here is my point! We lose 20% in the market due to Brexit then you will need a 25% return to just break even. You work the math or give us a call 888-287-1030. I like the fact we can add even more protection if the market falls like a rock. Remember the stock market move faster down than up, but rarely does the market move in straight lines. Notice we made money on BIDU today when it was down $4.80 yet we made money. If we do see a 20% move down I bet, we will make up 18% and only be down 2% on a big drop in the market. It is much easier to make up 2% instead of 20% !