First, you have to eliminate what is called Replication from your portfolio. And second, you must implement an approach to manage bear market losses.
Most people have been taught to answer a few risk questions on a Tuesday that somehow always get them allocated into a 60/40, 70/30 or 80/20 stock | bond approach. And then the only thing that will change that allocation is their birthday going from 59 to 60 and so forth. We think this is a very outdated approach. And one that does not take into account what is actually happening in the real world. Like inflation. And debt. And bear markets. And bull markets.
At Fearless Wealth, we operate by Three Principles:
We believe almost all investors have been taught to be over-diversified, even those who think they aren't. The problem is that an over-diversified portfolio doesn't actually grow your money better in bull markets, nor does it protect your money better in bear markets.
An over-diversified portfolio creates complexity, complication, and confusion for you. Your money is not safer, nor is it growing better. You, the investor, literally just owns more symbols. We think that is a problem. There's a better way.
Bear Market Protection
There are two indexes that are nearly impossible to beat over any seven-year rolling period. Literally, nearly all investors (professional or novice) cannot outperform these two unbeatable indexes overtime.
We believe investors should take advantage and own what no one can beat as a foundational position. There's a better way.
Partner With Experts We want to know your tolerance to losses and what income you will want /need from your money. And we believe the market is better at telling us how long and how much you should be allocated to the market.
Most would agree that being heavily invested in bonds during a long-term bull market does not maximize your performance. And nor would someone want to be fully exposed to the stock market during long bear markets. There's a better way.
As shown in the above bear market performance numbers we limited our clients downside losses. So how did we do that? We eliminated over-diversification. We owned the unbeatable index as a core position. And we implemented our ‘market-based rebalancing’ approach to guard against the impact of large market falls.
Fearless Wealth is a trade name for Peck Wealth Management, LLC.
Investment Advisory Services offered through Peck Wealth Management, LLC. A Washington State & California State Registered Investment Advisor. Access to Peck Wealth Management, LLC is only available to Peck Wealth Management, LLC clients pursuant to a signed investment advisory agreement and acceptance of our Client Relationship Summary and Brochure (Form ADV, Parts 2A, and 2B). Clients are encouraged to read these documents carefully. Each Personal Portfolio is subject to an account minimum. Peck Wealth Management, LLC retains the right to revise or modify portfolios or strategies if it believes that such modifications would be in the best interest of its clients.
If you have a question about your managed investment account or you want to speak to customer service, call 650.257.0207 Monday-Friday, 9 AM to 5 PM Pacific time and leave a voicemail. For fastest response time email us at Hello@FearlessWealth.com and we will get back to you that day.
Any index referenced for comparison is unmanaged and cannot be invested in directly. This message may contain information that is confidential or privileged and is intended only for the individual or entity named above and does not constitute an offer for or advice about any alternative investment product. Such advice can only be made when accompanied by a prospectus or similar offering document. Past performance is not indicative of future performance. Please make sure to review important disclosures at the end of each email and page. Note: Joining the Fearless Wealth email or community is not an offering for any investment. Investors should discuss any investment with their personal investment counsel. RC Peck is not your personal investment counsel unless you have a current signed agreement with him directly. Before seeking any advisor's services or making an investment in a fund, investors must read and examine thoroughly the respective disclosure document or offering memorandum.
PAST RESULTS ARE NOT INDICATIVE OF FUTURE RESULTS. THERE IS A RISK OF LOSS AS WELL AS THE OPPORTUNITY FOR GAIN WHEN INVESTING. WHEN CONSIDERING ALTERNATIVE INVESTMENTS, INCLUDING GOLD AND LEVERAGED FUNDS, YOU SHOULD CONSIDER VARIOUS RISKS INCLUDING THE FACT THAT SOME PRODUCTS: OFTEN ENGAGE IN LEVERAGING AND OTHER SPECULATIVE INVESTMENT PRACTICES THAT MAY INCREASE THE RISK OF INVESTMENT LOSS, CAN BE ILLIQUID, AND ARE NOT REQUIRED TO PROVIDE PERIODIC PRICING OR VALUATION INFORMATION TO INVESTORS, MAY INVOLVE COMPLEX TAX STRUCTURES AND OFTEN CHARGE HIGH FEES.
Alternative investment performance can be volatile. An investor could lose all or a substantial amount of his or her investment. You are advised to discuss with your financial advisers your investment options and whether any investment is suitable for your specific needs prior to making any investments. All material presented herein is believed to be reliable but we cannot attest to its accuracy. Opinions expressed in these reports may change without prior notice. RC Peck and/or the staff may or may not have investments in any funds cited above as well as economic interest. As much as we back-check and re-check, some material may contain errors, and you shouldn't make any investment decision based solely on what you read here or in our free weekly email or videos. It's your money and your responsibility.