Dangerous Questions

For Your Wealth.

The 4 Questions...

Dangerous Question #1: What's Your Risk Tolerance?

What a stupid question! Yes, I used the word stupid. You want to know what your risk tolerance is? Its high when the market is in a sustained stable uptrend and its low when the market is in a unstable down to sideways unpredictable non-trend. What’s most important is to be aligned with the market.

Dangerous Question #3: Can You Sustain a 40% Drop?

In a world of stupid questions, this one lives at the top. If an adviser asks you if you can sustain a 40% drop, run the other way and buy one of two products. Either just buy the S&P500 and reinvest the dividends (via IVV) or buy the Vanguard 60/40 split mutual fund (VBINX). But we don’t believe in the 60/40 approach which we discuss in other areas of our site. Just know that if an adviser asks you this question, they are saying we will NEVER EVER take your money out of the market.

Dangerous Question #2: How Old Are You?

When a financial adviser asks your age, its not out of curiosity. Its because they want to figure out your allocation of stocks to bonds. That's stupid crazy. You think the market cares about your age? It doesn't. Align yourself with the market first, second and third and then we can talk about how your age might matter.

Dangerous Question #4: What's Your Diversification?

Ahhh. Diversification. It's everywhere, from the big-box, to the boutique to the robo-advisers. It shows up everywhere that you don't even think to question its validity. People often believe that stock-market diversification is what’s protecting and growing their money. But actually its inviting in instability and loss. And if they were to just study all 20% to 50%+ falls they’d see that their well diversified portfolio took the full hit of every fall.

The Only Two Questions

Founder, RC Peck

Our approach is to take the advice of hundreds of millions of people that are putting their money on the line each day and then noticing as a group where their money is staying and flowing to. We do this by asking two question:

Question #1: What is the probability the stock market will protect and grow our money for the foreseeable future?
Question #2: Where is the money flowing?

For example if the answer to the first question is, YES, the market is in high-probability mode then we ask the follow-up question of, “Where is the money flowing?” We ask the same follow-up question if the answer to the first question is NO… get out of the market.

Learn More About How These Two Questions Can Change Your Life.

When you know the answers to these two questions, your returns will skyrocket! The simplicity of our system is where our advantage lies. The power of asking these two questions and knowing how to answer them is the cornerstone of what you need to secure and protect your future.

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Honest disagreement is often a good sign of progress.


Mahatma Gandhi

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