Traditional Investment philosophy uses asset allocation to reduce risk by dividing the investment into different groups such as stocks, bonds, and cash.
Over the long run, asset allocation has proven effective in reducing downside risk using the diversification strategy.
However, to get a reasonable return, even a conservative asset allocation will have a portion dedicated to stocks.
Even if you have only 40 percent of your allocation in stocks, a 50 percent downturn in the stock market will still cause your investment to lose at least 20 percent of it’s value.
Tactical Money Management uses a strategic formula to help your investment miss the majority of the market declines by moving funds to low risk vehicles ,like cash in bear markets, and then reinvests your funds as the market trends upward.
Tactical Money Management is the perfect medium between emotional “buy-sell-buy-sell” investing and “buy and hold” investing.
Avoiding market downturns allows your investment value to increase steadily over time.
Who wins the race? The sprinter that runs hard and fast for a few minutes then takes long breaks and loses pace. Or the steady runner that may not be at the front of the pack but doesn’t ever quit advancing?
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