Performance
Asset Allocation DOES NOT WORK LIKE YOU THINK!
It locks in losses and limits gains - that is the exact OPPOSITE of what you believe it does. Take a look at the next chart and you’ll understand. It took years in the business and the realization that even though I had done exactly what was proscribed by the Wall Street Geniuses, non of my clients get the results that we were told to EXPECT. How could that be? The indexes were at levels that indicate the models should have worked.
So, i did my own research of what I was told over the years. I threw the data into a spreadsheet and what to my surprise did I find:
TRADITIONAL ASSET ALLOCATION DOES NOT WORK - take a look at these examples (and feel free to plug in ANY Funds you choose, everyone has he same traditional allocation)
(Click the image above to enlarge)
In a nutshell, traditional asset allocation delivers approximately 69% of the S&P 500 Idx returns in an UP year, while delivering 87% of the returns of the S&P 500 Idx in DOWN years.
So, if I get 69% of the ups and 87% of the downs - HOW CAN I WIN?
The answer is YOU CAN’T and WON’T. Now, add fees and those number get worse - (58% of the up years and 98% of the down years).
Just like at a casino, the LONGER YOU USE TRAITIONAL ALLOCATION THE FURTHER BEHIND YOU FALL. THE GAME IS STACKED AGAINST YOU!
Use the SSIM model and create your STRUCTURE: Lower risk, Lower cost, Increase PERFORMANCE, Increase CLARITY, Increase EFIICIENCY.
We’ll show you the light.