Quote of the Week
“A wise man will make more opportunities than he finds.” – Francis Bacon
Last week was another typical Quad IV week. All the major indexes were down between -2.08% for the Dow and -2.77% for the Nasdaq. So far this week the indexes are down again. Folks, this isn’t over. There is really nothing holding up the equity markets, especially with the Federal Reserve being ultra-aggressive in raising rates.
We haven’t shown you this table recently that we put together many years ago. The major problem to avoid in successful asset management is minimizing losses. Our investment process is designed to limit losses through the use of mathematics (Calculus) and fundamental research. Then buy back in when the markets trends turn positive.
The red bar in the table shows percentage losses, and the green bar shows the percentage return necessary to get back to even. If you can keep losses to a minimum, you would obviously have more of your capital to take advantage of a rising market.
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These are Larry Lof’s opinions and not necessarily those of Cambridge, are for informational purposes only and should not be construed or acted upon as individualized investment advice. Past performance is not indicative of future results. Due to our compliance review process, delayed dissemination of this commentary occurs.
The S&P 500 index of stocks compiled by Standard & Poor’s, a division of The McGraw-Hill Companies, Inc. The Index includes a representative sample of 500 leading companies in leading industries of the U.S. economy. Indices mentioned are unmanaged and cannot be invested into directly.
Technical analysis represents an observation of past performance and trend, and past performance and trend are no guarantee of future performance, price, or trend. The price movements within capital markets cannot be guaranteed and always remain uncertain. The allocation discussed herein is not designed based on the individual needs of any one specific client or investor. In other words, it is not a customized strategy designed on the specific financial circumstances of the client. Please consult an advisor to discuss your individual situation before making any investments decision. Investing in securities involves risk of loss. Further, depending on the different types of investments, there may be varying degrees of risk including loss of original principal.