At our next event we’ll talk about how to win with Capitalism. Let me remind you how we won last time. I wrote this in August of 2011:
In October of 2007 the DOW was at 14093, and everyone was happy. By March of 2009 the DOW had hit bottom in the 6000’s. Few were happy. Many were panicked. But my clients remained disciplined. We rebalanced.
By January this year , as the DOW struggled to reach 12000, still 15% off its previous 2007 peak, my clients had all of their money back. How? you ask. How does one get back to 100% when the “market” is only 85% of what it was at its peak?
The answer is simple math and a proven investment strategy. . .
- We own over 12000 companies in 44 countries in 17 distinct asset classes that are engineered based on their dissimilar price movements or low correlation. In other words, you owned emerging markets and microcap stocks before they doubled in value rather than having to chase after the return.
- We bought more shares on the dips through our rebalancing efforts all the way down the hill. In other words, while others were panicking, we were buying their lower priced shares. Slowing and quietly making strides in your portfolio but adding to the number of shares you own.
So, when the rebound came, you went up the hill with more and better shares than the “market” (the DOW).
We’re going to do the same thing this time, and you are going to win again.