If you’re buying and holding in this market you’re not happy–
If you’re trying to do the exact opposite, or time the markets, I don’t think you’re going to be too happy either.
Truth is, not many investors are
happy right now.
Is your advisor a buy-and-holder? Are YOU a buy-and-holder? Ut-oh. Still parked in that stale Modern Portfolio Theory pie chart with 10% commodities and 10-20% in International equities? Start your engine and pull out of the parking lot–it’s time to head to greener pastures. https://youtu.be/70gIcZ0PN68
Conversely, are you or your advisor market timers? While this camp, I offer, is well-intentioned I caution that most are ill-equipped to navigate markets, good or bad, effectively, without getting killed with fees and commissions much less Grecian-Janet Yellen-Chinese market whiplash.
Why not use this market opportunity as the perfect time to make a change?
The Liberated Investor Movement subscribes to an alternative investment methodology to a traditional buy and hold strategy and one that doesn’t time markets—yet TACTICALLY shifts assets and investments as prudent, and only when the strict rules of the “risk on the field” call for such shifts. We call it the Liberated Investor Model.
Investor or Advisor bad behavior accounts for a tremendous percentage of under performance in investors portfolios. Liberated Investors don’t behave badly.
Don’t fall victim to “bad behavior” (also known as buying high and selling low) which will happen precisely at times when investors and the prevailing Media Noise will have you believe that markets are overvalued.
“…when looking at long-term returns, the average asset allocation investor has under performed both equity and fixed income indicies. For the 5, 10 and 20-year time frames, the average asset allocation investor failed to keep up with inflation. Investor bad behavior accounts for staggering investment under performance.”
The reason for the under performance is the shifting of investments without a plan or ground rules.
Yes, these volatile markets will prove trying to both Buy and Hold and Market Timing camps, because both will tend to make bad decisions in volatile markets.
The Tactical camp—the Liberated Investor Model, offers the best solution for long term out performance and good behavior when markets get uncomfortable.
The Liberated Investor Model borrows the discipline of “Buy and Hold”, but not the passivity. It borrows the responsiveness of the “Market Timer”, but instead of emotion driving the choices, our model looks at facts and logic.
So in essence, we take the best of both models and combine them into a fact-based, disciplined approach that we call The Liberated Investor Model.
This model is really just common sense – without all the fluff.
Are markets high? It doesn’t matter to Liberated Investors – their investments will be guided diligently as the indicators and markets dictate – WELL in advance of thinking something needs to be done.
Why don’t all advisors/investors move into bonds when bonds are ranked high on the asset scale? Why don’t all advisors/investors sell asset classes (ahem, commodities and now international equities) that are performing worse than cash? It takes, time, effort, attention and quite honestly, isn’t always easy to go against the flow of market noise and opinion.
Succinctly, its easier for advisors to put their feet up on their desk and tell their clients to simply not look at their statements, and that “the market will come back.” The road of integrity is never easy–it takes discipline and action fueled by a truth that you are serving your clients well; with low fees, no conflicts of interest, and above all, NO EMOTION.
Dump the pie chart, and dump the emotional timing—Get Liberated.