Masochism (?mas??kiz?m): A Popular Investment Strategy With No Risk Management

The Austrian novelist Leopold von Sacher-Moser (1835-1895) first discovered how pain and pleasure can be intertwined.  Watching the S&P 500 dive 3.59% last Friday and quite a bit more today has been for most investors exceedingly painful.  If you have been enjoying the roller coaster, keep your investment strategy unchanged!  However, if you are looking for smarter ways of navigating volatile markets, we have some ideas.  Just to recap: on June 23rd, the British held a referendum and shocked everyone by voting to leave the EU (Brexit).  Consequently global markets got absolutely walloped.  On Friday, June 24th, the S&P 500 was down 3.6%, the German market fell 6.8%, and the Italian stock market crashed 12.5%.  By comparison, the Carden Capital Smart Wealth Indices held up exceptionally well:

We believe now is the time for investors to pursue caution and focus on risk management.  Strategies with embedded downside protection, like the Carden Capital Smart Wealth Indices, can help reduce losses, as demonstrated most recently during Friday's market crash.

Here are a few other things you might want to check out:

• We held a webinar on How to Increase Your Investment Returns and Reduce Risk.  Given our current investment environment, you may find this useful.

• We recently wrote about turning down new institutional business for our Night Prowler managed futures program. The Night Prowler is an innovative investment strategy that trades in the night session of the futures market.  It responds well in volatile markets and has been the source of much interest lately.

• Lastly, our free market timing algorithm Smart Hedge? continues to remain in cash.  If you are interested in receiving free Smart Hedge? signals, you can sign up here.

 
Have a great week!
Carden Capital