Do you have your 24?

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October 18, 2018
Do you have your 24?

Image Copyright Ted Grussing Photography – Used with permission

In recent past segments, we discussed the different fears that currently abound in the media about when the next bear market will begin. And, of course, the follow up fear of what will happen to the value of your portfolio at that time.

There are very few of us now who do not remember the great recession of 2008-09.

The average loss or drop in value for most portfolios was anywhere from 50% to 55%.

Just for context, that means if your portfolio was worth 1 million you watched it drop in value to 500k.

How could that not be gut wrenching?! Nevertheless, if you were able to withstand the pressure and stay in the market the recovery eventually reached 4 fold. That means a 50% drop in portfolio value would have recovered and could now be worth up to three times as much as before the drop.

Understandably, a 50% drop in value is nothing to sneeze at, and for most it proved to be more than they could handle. So many sold all their securities and secured the 50-55% loss in assets.

Since we all know this bull market is nearing it 10 year birthday and we know bulls don’t run forever, we would like to share something with you which might be the best way to prepare your portfolio for when the next bear market does come.

What if we told you there were portfolios in 2008 that only dropped 20-25% in value? What made the difference? The answer is the number 24, and over the next few weeks we will explain how that number could help you and your portfolio as well.

Have a great weekend!