Why Asset Allocation Doesn't Work!
Ask most financial planners how to reduce risk and volatility in your portfolio and they will say use proper asset allocation. That means divide up your portfolio into different asset types.
Asset allocation does not mean diversification. It means, for example, invest in stocks and bonds instead of just equities, even if you think, long-term, equities will out-perform bonds.
What they donít tell you, and they may not even realize themselves, is that asset allocation guarantees you will lose something. For example, if the market goes down you lose money because you still invested in equities. And if the market goes up, you lost an opportunity to make more money, because some of your assets were in bonds.
Take a look at the charts on the following page to see the impact asset allocation can have on your investments and then compare it to the chart showing the results, under the same scenarios, using the SafetyNET Trading System.
When it comes to protecting your investment portfolio while still allowing for high equity-type returns, the SafetyNET Trading System will beat asset allocation hands down!
Click Here to see the charts!