| Question: Is it possible to create a better risk adjusted return than the stock market over time, through limiting losses on downturns and accepting less participation in an upswing? Answer: Yes, it is! Limiting losses to 40 % on a downturn, through active allocation, and accepting only 60 % participation in an upward movement of the market have yielded 37 % better returns these past 20 years than the global stock market - at a 70 % lower rate of risk! | Losing 50 % of the portfolio value requires an upward turn of 100 % to retrieve the loss.
It is difficult to retrieve a loss and it can take a long time!
A downturn like the 40 % loss in the first half of 2001, required 14 months and an upward turn of 67 % before the loss could be retrieved. |
With Valbays analytical model we can offer active Asset Allocation and provide stable and good returns in upswings and limited losses on downturns.
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