Profiting From and Protecting Against
Stock Market Volatility

Financial advisors and wealth managers have vested interests to advise clients to remain in the stock market during crashes, secular bear markets and recessions, etc.:

  • Fee to manage stock much higher than bond assets
  • Clients do not pay fees on cash held in account

Thus, the financial advisor maximizes their fee when the client is 100% invested in stocks.

A new secular bear market will soon arrive to replace the 2009 secular bull market. Based on the three previous secular bear markets the S&P 500 will likely:

  • Decline by 60% from its secular bull peak to its trough
  • Not excede its secular bull peak until 2033

Chart below depicts value of $100 invested in S&P 500 from 12/31/08 to 12/31/18 under the following strategies:

  • $278-Traditional buy and hold
  • $756-Traditional buy and hold with exception that $100 not invested during 25 worst percentage decline days
Click here to view "The 25 Worst Days of S&P 500 History"