Thursday, September 25, 2008

How to measure Bear Market benefit to YOUR savings

Is the Bear Market good for me?

We've been talking about the advantages of the Bear market in our web seminars. You may have read the quotes by Warren Buffet about how he looks forward to declining stock prices. The 24/7 financial news channels are working hard to spin the Bear Market as, “not so bad” for investors. Why then, are folks still not comfortable seeing their 401k and other savings dropping 5%, 15% and 25%? Why are large investors pulling billions of dollars out of the stock markets? How come you don’t feel love for the Bear??

The reason is uncertainty! How much real risk is there? “What does the worst case look like?” “What if everyone else bounces back but I don’t?!” “How can I be sure I am not being played for a fool?”

There is a way to measure risk in your investment strategy. Harry Markowitz developed a theory in the 1950’s that he won a Nobel Prize for in 1990. We can apply his formula to your current investment strategy. We can calculate an expected return for different levels of volatility that you accept for your investments.

Learn how to build Peace of Mind into your investments. Depending on your tolerance for risk, you will still see ups and downs in your invested savings. Learn what acceptable volatility looks like for your investments. What potential is there for volatility next year?

Sign up for one of our informational web seminars and attend our next educational event in October. Register on line at
www.vanderwey.com or simply choose the 'workshops' tab to the right and select the seminar tab at the bottom of the page.

No comments:

Free Market TV

Loading

Previous Episodes