Worrying about a Black Swan event can do serious damage to a portfolio.
Jon Sindreu and Laurence Fletcher write at The Wall Street Journal:
In the wake of the global financial crisis, fear of such “black-swan” events drove some investors into hedge funds that offered protection should markets plunge. But the swans have yet to return, and such strategies have fallen out of favor.
The patience of many investors has run out after losing money during the intervening years of mainly benign market conditions. According to data by CBOE Eurekahedge, those who invested in these tail-risk funds—which are designed to reap benefits from sudden slumps—when their performance peaked in September 2011 would have by now lost 55% of their money.
Some big names in asset management have been hit, leaving only a handful of funds that promise outsize returns should markets go into a tailspin.
Richard Young’s Dynamic Maximizers can help you weather the storm. Below you can see how the Dynamic Maximizers have performed this century.
E.J. Smith - Your Survival Guy
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