Let me preface this page by stating that I am not securities licensed nor do I give investment advice.
The following data about “maximum drawdown risk” was obtained from Fasttrack. It’s fascinating.
Did you have any idea that the maximum drawdown risk of the S&P 500 on average from 2000-2012 was -13.5% (computed over a 12-month window) and -19% (when computed daily)?
Do you think this is good information for clients/investors to have so they can make informed decisions about investing in the S&P 500 or other investments (mutual funds, bonds, REITs, etc.)?
I do. And I believe if clients understood the amount of risk they were actually taking to achieve the investment results they are receiving in most if not all of their investments, they would seek other alternatives (such as the several funds the advisors I work with offer (like one with a daily drawdown risk of only 4% coupled with a 9.93% return for 21-years ending in 2012).
If you would like a referral to a “good” advisor (vs. the “bad” advisors I talk about in my book www.badadvisors.com), please e-mail email@example.com.
Have a Question?