Conventional Investment Systems do not adjust to the change in economic climate or appropriately manage an Investors losses.
The Fearless Wealth Algorithms pivot
on the probability of making or losing money.
These 'hedge fund' like algorithms are focused
on managing long-term risk, thus greatly
lowering the loss of capital and making
the growth of money safer and easier.
Dear Reader,
The reason the Fearless Wealth Hedge Fund Algorithms work so well is because they are designed to manage an investors ‘down side’risk first.
The Algorithms are designed to first make sure that an investors loss is minimized. Conventional Investment Advisors have no mechanism to manage a person’s downside. They believe the investors money should ALWAYS be in the market. I don't have that belief.
Before I go on, let me define the word "algorithm" as it will be the only 25 cent word I use on this website.
An algorithm is defined as a well defined set of instructions for automating the process of calculating a set of data in a finite way. English speak: its a formula that creates a signal when certain parameters are met.
Okay, back to the conversation of why managing losses is important.
If an investor buys a stock at $10 and it falls to $5, they instantly lose 50% of their capital. To recoup that lost money that investor has to grow that remaining $5 by 100%.
150 years of market history and statistics shows that it will take the average investor 15 years to get their money back just to where they started. And that 15 years does not include inflation and opportunity cost.
When investors follow an algorithm that never takes a big loss that cannot quickly be recouped, they are spared the lifetime of playing ‘catch-up’.
And of course if an investor is playing ‘catch up’ they are not playing “I-get-to-retire-on-time.”
Why the Fearless Wealth Algorithms work:
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They never take big losses. (We were out of the market in 2001, 2002, 2008)
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They expect losses and prepare for them.
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They are focused on long-term gains (and not short-term).
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They are okay investing in an asset class quarters or years before the public shows up.
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They are okay holding cash sometimes.
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They do not demand that the markets go up in order to make money.
System Results From 2000 to 2010
Our results speak for themselves.
WARNING: There is no guarantee that any investment product will achieve its objectives, generate profits, or avoid losses. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. YOU AS THE INVESTOR TAKE ALL THE RISK.
The system results are based up to December 31st 2010.
Please remember when investors manage their losses and let it be okay to buy into an investment before everyone else does, they often live in constant amazement of what money can really do.
Often my paid-up subscribers and private clients will tell me that their friends and colleagues simply do not believe how well their money is being protected and grown, especially when they consider how little my paid-up subscribers and private clients “work” at this.
Here is the key, hedge funds are not publicly traded, thus allowing them to be invested in positions that are best for their clients even if they don't beat the market that quarter. In other words, they are not attempting to beat the stock market each quarter, this allows them freedom to do what is best for their clients.
The unbelievable happens every year for a select few.
Major Historic Calls
WARNING: There is no guarantee that any investment product will achieve its objectives, generate profits, or avoid losses. PAST PERFORMANCE IS NOT INDICATIVE OF FUTURE RESULTS. YOU AS THE INVESTOR TAKE ALL THE RISK.
I am showing you these past major calls for one simple reason: I want the reader to notice how we are not afraid to manage risk first, and second, to move our money ahead of the crowd.
“Get out of the stock market.”
(November 3rd 2000)
The SP500 fell 45.56% before bottoming after this day.
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“Back the truck up. It’s time to get into the market with leverage.”
(May 31st 2003)
The mutual fund RC recommended, RYTNX, rose 82.43%, beating the market by 97%.
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“Put 5% of your portfolio in gold and hold for 13 years.”
(August 17th 2004)
Gold on 8/17/04 was $425 an ounce.
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“Get out of Bank Stocks.”
(October 12th 2007)
Bank stocks fell (as measured by XLF) by 83% the following 15 months.
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“Avoid all Real Estate Investing!”
(January 5th 2007)
Housing has fallen 33% Nationwide since 11/07
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“Get out of the stock market and move to cash.”
(January 15th 2008)
The SP500 fell by another 47.60% after that.
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“Silver is greatly undervalued to gold. Buy Silver over gold.”
(April 2nd 2009)
Silver moved up 82% faster than gold from 4/2/09 to 10/8/10.
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“It’s time to get back into the market.”
(August 6th 2009)
The SP500 has increased 15.31% to 10/8/10.
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“Buy long-term US treasuries with 300% leverage.”
(February 9th 2010)
Our boring treasury purchase beat the market by 400% in four months!”
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“Gold will never hit $1,000 an ounce ever again.”
(October 5th, 2009)
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Questions & Answers
How many investors do you have following you?
The honest answer is I don’t know. I started my company in 1998 and each year I touch or work with 5000 people.
What are the risks factors with each of your algorithms? People often believe that one must risk more to gain more, why this may be (or may not be) true in the world of earning money. This is absolutely not true in the world of investing money. The very idea that an investor has to bet big to win big is, not only false, but dangerous.
The algorithms that my clients use work because they turn risks on its head. Literally when the market get's "risky" is when the algorithms signal to get out. All of my systems were built to manage risk and expect it, therefore they are expecting risk every day and are prepared for risk every day.
Who are your main information sources?
This is a big question. My first answer is everyone. I listen to everyone but follow very few. I want to know what people are saying on TV and on the Internet and in the blogs because that represents what the masses are probably thinking. But if you are asking who has influenced and molded my approach, the answer is Jim Rogers, John Henry, John Paulson, Rich Dennis, Ed Sakota, Tom Basso, Bruce Berkowitz, Stanley Druckenmiller, and William Eckhardt, to name a few. Out of that list - and it is not at all an exhaustive list - the investment systems I teach and follow are generally based on the ‘investment’ billionaires of Jim Rogers, John Henry, John Paulson and Bruce Berkowitz.
Does your program teach you how to invest in the stocks directly, and not in mutual funds, and that this saves the expense of managing these funds? Mutual funds are essentially dead. They are a product of the 1990s. What my algorithms do is to show you where the highest probability investments are in the market. This almost never includes mutual funds.
Do you receive any financial compensation from any of the buys you recommend?
No. I do not receive any compensation from any of my recommendations or introductions I make.
How do you get compensated?
If you are asking how I make my money, I make it through my clients paying me to educate, guide, and coach them to do what is best for their money. My business model is very transparent. People receive objective, unbiased, third-party guidance from me.
Are all Fearless Wealth investors following the same plan?
Not all of my clients are following the same plan. When I work with my private clients we work together on building the best system for them and their money. Each one of my one-on-one clients has a tailor-made plan for them. No boilerplate.
What do you call your investment approach?
Mostly I call it ‘probability investing,’ though that is not an industry term, like ‘value investing’ or ‘fundamental investing’ or ‘technical investing’ or even ‘behavior investing’. ‘Probability investing’ is the intersection of value investing, fundamental investing, technical investing and behavioral investing. There are parts from all four disciplines that are extremely relevant and powerful. And there are parts from all four that are potentially dangerous and limiting. I simply took the best parts and put them in a single approach: “probability investing.”
Together, we are growing and protecting your wealth,
