The Prudent Retiree - March 5, 2021

We don’t like to lose. Certainly, investors don’t like to see the market go down. Volatility, though, is part and parcel of investing. There will be days when values decline. It is essential to discern the difference between a short-term correction and a prolonged bear market crash. You can’t respond to the vagaries of headlines and talking heads. That can cause a wrong turn that leads to loss. We respond to what the market is telling us, not what is on the media.

Jackson Browne is one of my favorite singer/songwriters. “Your Bright Baby Blues” was released in 1976, the year I graduated from college. The song and I go back a long ways. I started my investment career not long afterwards.

The lyrics, “you don’t like to lose” have always been watchwords for me. The markets do go up and down and at times there are brutal bear markets, like 2008, that can change investors’ lives. It’s common sense that you want to do all you can to avoid large losses. That is the key to investment and retirement success. You can ride out the volatility corrections, but it’s tough to come back from the harm a 2008 style crash causes.

Prudent Retiree’s broken record is stuck on reminding you to listen to the market and utilize a disciplined risk management strategy to help you stay clear of protracted bear markets.

We also want to be in the market when conditions are favorable. There will always be someone on the media telling you it’s bad out there. You know that. Discipline, not responding to fears of the moment, will help you make prudent decisions.

The song says, “you don’t know what you’ve got to gain, but you don’t like to lose.” Prudent Retiree doesn’t know exactly how much we’ll gain, but over time you can make good consistent returns if you start from a foundation of risk management.

For the most part, we continue to have about 25% of our normal equity allocation in cash. We are looking for a volatility correction and plan to get fully invested. Of course, your portfolios may be different due to your particular circumstances. Call if you have any questions.

Here at Horseman Group, we strive to provide you with the highest possible level of customer service. Feel free to reach us at 314.692.7842 with any questions regarding your investments, risk management, or retirement. 

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Horseman Group – 3 CityPlace Drive - Suite 290 – St. Louis, MO 63141 – 314.692.7842 – www.horsemangroup.com

Securities and advisory services offered through LPL Financial, a registered investment advisor. Member FINRA/SIPC. The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. All performance referenced is historical and is no guarantee of future results.
Investing involves risk including loss of principal. No strategy assures success or protects against loss.

A market index is unmanaged and may not be invested directly.