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Riding The Rules Based Roller Coaster!

Over the last several months the US stock market (S&P 500) has been kind of crazy. In many ways it has been a lot like riding a roller coaster! In July 2015, the US Stock market (S&P 500) nearly peaked. In August, the same market dropped 11.2% intra month. In September, after a loop or two, it touched the bottom again; zoomed up the roller coaster hill in October to ride to the top in November, only to nose down at the end of December into a 10.4% loss by mid-February. Finally, it’s risen into an 8.9% bounce over the last few weeks. (Morningstar.com)

So you may be asking yourself, what choices do I have with my investments during these volatile times? One choice is to ride it out. Does this ride turn into 2008 and the S&P 500 lose 38% (Morningstar.com)? Or does this ride turn into 2011, in which it losses 17% intra-year only to recover within a few months? Obviously there is no way to know for sure! Sometimes you don’t know what kind of roller coaster you are going to be riding, but with Sound Financial Strategies Group you DO have a choice.

All investments have a certain degree of risk. You’ll remember that the first time you sat down with your Sound Financial advisor you discussed what kind of risk level you were comfortable with. We’ve taken those different risk levels into account with the development of our Rules Based Strategy for how we handle your investments. For some, you are comfortable with a higher risk level and sometimes your investments may feel like one of those roller coasters at Six Flags with all the loops and speed. With this risk level there is the potential for gains, but the risk of losses increases too. Many of our clients choose a much more conservative risk level which may feel more like a kiddie ride. Sure it’s a little tamer, but you don’t have to worry about losing your lunch! The chance of gains may take a little longer and require patience, but there’s a lower probability that the losses will compound, therefore making any dips easier to climb out of.

In any case, our Rules Bases Strategy monitors the markets and your investments and uses the data to tell us when adjustments need to be made. We will maintain the risk category you selected, but we will make trades to keep you in what we believe (and the facts have told us) will be the best position to withstand the dips and/or place you in a strong position when the gains occur. So the question becomes, what kind of ride do you want to be on? Whatever your answer, the advisors at Sound Financial Strategies Group have a Rules Based solution for you!

Investment Advisory Services offered through Sound Financial Strategies Group, Inc. (“SFSG”), a Registered Investment Adviser. Certain representatives of SFSG are also Registered Representatives offering securities through APW Capital, Inc., Member FINRA/SIPC, 100 Enterprise Drive, Suite 504, Rockaway, NJ 07866 (800)637-3211. SFSG and APW Capital are separate and unrelated companies. 

The opinions voiced in this article are for general information only. They are not intended to provide specific advice or recommendations for any individual and do not constitute an endorsement by APW Capital.

Neither diversification nor asset allocation can ensure a profit or protect against a loss. Past performance is not indicative of future results.

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