strategy allocation a.k.a. millennial portfolio theory

Strategy Allocation a.k.a. Millennial Portfolio TheoryBy: AMIC Advisors, Inc. 2016 All Rights Reserved

Strategy Allocation a.k.a. Millennial Portfolio Theory AMIC Advisors, Inc. 2016 All Rights Reserved Research excerpts used with permission.

http://www.amicadvisors.com/tools-ebooks-timeless-information.html

Strategy Allocation a.k.a. Millennial Portfolio Theory AMIC Advisors, Inc. 2016 All Rights Reserved

Investors need more active strategies in order to avoid potential catastrophic drawdowns (think Global Financial Crisis of 2007-2008). As retirement/objective approaches, it becomes more difficult to recover from these drawdowns.

Top 5 Investing Concerns

The Top 5 concerns were: Market Volatility Funding my retirement Investment risk Don’t know where to put my money Fear of investing and/or failing to make

smart choices

$1,000,000 Portfolio Growth Over 20 Years, not to be expected going forward

Stock Bonds HistoricalAnnual Return

HistoricalPortfolio Value at Year 20

100% 0% 10% $6,727,500

90% 10% 9.6% $6,254,766

80% 20% 9.2% $5,813,702

70% 30% 8.8% $5,402,290

60% 40% 8.4% $5,018,635

50% 50% 8% $4,660,957

40% 60% 7.6% $4,327,583

30% 70% 7.2% $4,016,943



Running out of money in retirement is a very real risk.


Market declines happen frequently and severely.

Strategy Allocation a.k.a. Millennial Portfolio Theory AMIC Advisors, Inc. 2016 All Rights ReservedStrategy Allocation a.k.a. Millennial Portfolio Theory AMIC Advisors, Inc. 2016 All Rights Reserved

Drawdowns can cause an investor to run out of money.

How would you be affected if it took your portfolio up to 57 months to recover?That’s over 4 and a half years!!!!!

Strategy Allocation a.k.a Millennial Portfolio Theory addresses all of these concerns


smart choices


How?Avoiding large drawdowns through

active tactical investing mitigates all 5 fears

Strategy Allocation a.k.a Millennial Portfolio Theory addresses all of these concerns


smart choices



But aren’t market crashes things of the past?

What makes us think that we still need to worry about large, future drawdowns?



Remember: Market declines happen frequently and severely.


In one out of every two years (51% of the time), markets decline from their highs by over 20%!


Meaningful drawdowns still occur regularly.


What do you see happening every 8 years since the 1990’s?

Same 8-year segment (2008-2016) compared against S&P 500 two previous times

#1

#2


Why is this occurring?

And, more importantly, what can we do about it?



This recovery has been embarrassingly weak.


Continued lackluster growth in working population and Gross Domestic Product (GDP)


Corporate profits have been declining in recent years. Future profits are likely too optimistic.


Inflation is the enemy

Problematic since 2001


Current yield curve has been too flat for too long. Low rates means banks and investment institutions take on more risk.Financial system becomes riskier the longer rates stay low.


Balanced portfolios have returned 6.7 - 7.2%.The average investor only returned 2.1%.

These scenarios assume that an investor was invested in the market every day.


But what if…

…an investor could get returns by being in the market less often than every day?



This is what the “Active” component of our strategy allocation accomplishes.You REDUCE RISK when you spend LESS time in the market.

Strategy Allocation a.k.a. Millennial Portfolio TheoryContact us.Let’s discuss how these concepts can be applied to protect and grow your portfolio.

AMIC Advisors, Inc. [email protected]

A new approach for a new era.


http://www.amicadvisors.com/tools-ebooks-timeless-information.html

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