What we’re about
Employing buy-and-hold strategies is unfortunately a de facto standard in the financial industry. It is the go-to approach for financial advisors, who allocate your money (often in ETFs you could easily buy yourself), then perhaps rebalance once a year and collect 1% of your net worth as a fee for just a few hours of work annually. And when the markets decline, they shrug their shoulders and tell you that everyone is affected by the market environment equally.
Their argument that, in the long term, markets always go up and all drawdowns will eventually recover is true. However, why endure prolonged drawdowns, like those following the dotcom bubble or the global financial crisis, where recovery took many years just to break even? Additionally, long-term return expectations for funds like the MSCI World ETF need to be inflation-adjusted. When you consider the true rate of inflation (likely higher than the government’s official numbers) and factor in your financial advisor’s fees, you may find that, after decades of saving and investing, your inflation-adjusted returns are negligible, if not negative.
What's the only way out? You need to take matters into your own hands and actively avoid drawdowns, which reduce your long-term returns to single-digit figures.
Are you fully employed and don’t have the time to actively manage your long-term investments daily? That sounds familiar! Most people don’t have time to monitor their investments regularly, or they simply don’t want to. But what if there were reliable metrics available to tell you when to be invested and when to stay on the sidelines? Only when dark clouds appear on the horizon would you need to act, moving your investments to safer positions. Checking the market status each day takes just a couple of minutes, and, if transactions are required, perhaps another 10 minutes.
In this group, we aim to discuss how to avoid the above dilemma and identify easy-to-follow metrics for successful long-term investing, ultimately helping you retire with financial security.
Once we have enough members in this group, we can start organizing face-to-face meetings to take the next steps in this endeavor.
