|
A fact investors seldom consider is that every time a portfolio takes
a loss, it must make a larger corresponding gain to break even.
| Percentage Lost: |
 |
20% |
|
Gain Required to Get Even: |
|
25% |
|
|
|
30% |
|
|
|
43% |
|
|
|
40% |
|
|
|
66% |
|
|
|
50% |
|
|
|
100% |
|
|
|
60% |
|
|
|
150% |
|
WHICH $100,000 INVESTMENT WOULD YOU CHOOSE?
|
|
Investment A |
|
Investment B |
| Year 1 |
|
20% |
|
10% |
|
| Year 2 |
|
20% |
|
10% |
|
| Year 3 |
|
-20% |
|
10% |
|
| Year 4 |
|
20% |
|
10% |
|
| Totals |
|
$138,240 |
|
$146,410 |
|
* This chart is intended for demonstrative
purposes and is not intended to indicate that Your Financial Advisory Service,
Inc., returns 10% a year.
One way to avoid large losses is to maintain
our focus on the movement of the market. Our approach enables us to
make tactical moves in reaction to market trends so that we can withdraw
from the market when our indicators show a downtrend and re-enter it
when the trend is upwards.
Your Financial Advisory Service works
to be in the market for 70% to 85% of an up-trend and out of the market
70% to 85% of a downtrend. The payoff, if successful, is a balance of
safety and return, providing you a smoother path towards your investment
goals. It’s also peace of mind.
This chart is for visual demonstration
purposes of “strategies” and is not intended to indicate performance.
Past performance is not a guarantee of future results.
|
