Do Your Clients Need an Exit Strategy?

In the 2008 crash and its aftermath, $2 trillion of Americans’ retirement savings were wiped out in just 15 months, according to the Congressional Budget Office.

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Comments (3)
Of course - their proprietary market timing process will save you! You'll get out at the top and back in at the bottom! They guessed correctly once (assuming this is accurate) and I'm sure have been marketing the hell out of their "proprietary process" since. Sadly, they are probably taking business away from respectable advisors that present realistic expectations to their clients.
Posted by Bradley B | Thursday, November 21 2013 at 4:01PM ET
I feel sorry for Bradley B as he is obviously stuck in the proverbial "Dark Ages" and thinks that a Buy & Hold Strategy is a good idea - you know, the one from "Modern Portfolio Theory" - the one developed by the sage Harry Markowitz et al during the 1950's when anything new or inventive was called "Modern" :-) If that is what a "respectable advisor" does to their clients (def. one who is under the protection of another) much less their customers (def. one who buys a product or service from another)God help their clients!!! By the way, simply going to cash and holding is a flawed strategy as well witness the return on Intermediate U.S. Treasury Notes which were up over 13.00% between Nov 2007 and June 2009. If one actually utilized a Long/Short Bond Strategy the potential return was over 50.00% positive during the same time frame!!! If asset allocation and diversification of a portfolio is truly to utilize ALL available asset classes, why not purchase these same U.S Treasury Notes instead of going to cash and holding court??? Just sayin'.........
Posted by MICHAEL M | Monday, November 25 2013 at 7:44PM ET
Settle down Michael M. - you have no idea what my process is.
To be clear, I am not advocating for buy hold and forget. Just pointing out that there will never be a perfect system that is going to give you all of the upside of the market and remove most of the downside. If you believe you have this system, you are not only fooling your clients, you are fooling yourself. I actually agree with having long/short investments (and/or other non-correlated investments)in a portfolio - they can be great diversifiers.
Best of luck.
Posted by Bradley B | Tuesday, November 26 2013 at 8:30PM ET
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