Newsletter: Is Another Market Crisis Ahead? Yes or No… It Looks Like a Good Time to Diversify

Our weekly newsletter is up at http://bit.ly/dYRLsG . With all the chaos erupting across the world, we thought we’d ask…Managed Futures v. Stocks in Times of Crisis

What have you been thinking as you watch the violence in the Middle East on TV, the protests in US state capitals, and stock markets starting to show some weakness (S&P down -2.52% from its Feb high)? Have you been thinking about how well your portfolio can handle a crisis? Or hoping these events turn out for the best and don’t derail the impressive rally that began in March 2009?

It’s part of human nature to hope for the best. But it is much better for your financial health to prepare for the worst. Those thinking this time is different – this market is too strong – are usually those scrambling for the exits when things turn out to be not so different from other market crisis periods. Perhaps this is why Sir John Templeton is quoted as saying, “The four most dangerous words in investing are ‘This time it’s different.’”

People owning stocks are certainly hoping it’s different this time around, having come to enjoy the double digit annual returns stocks have provided over the past 24 months. On the cusp of the 2year anniversary of the March 2009 low, the S&P 500-stock index closed on Friday at almost double its closing low of 676.53 on March 9, 2009, and the Nasdaq is up over 112% from its low. This is a powerful drug to walk away from, with the allure of even more profits and upside leading to people hoping this time is different – instead of the more prudent planning for the worse.

So where are stocks going from here? Are we going to see continued upside to new all time highs (even if they are easy money inflated nominal highs)? Or is this just a bear market rally similar to what Japan has experienced over the past 30 years?

Click here for the full piece: http://bit.ly/dYRLsG

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.

Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, and reports directly from the advisors. These performance figures should not be relied on independent of the individual advisor's disclosure document, which has important information regarding the method of calculation used, whether or not the performance includes proprietary results, and other important footnotes on the advisor's track record.

Benchmark index performance is for the constituents of that index only, and does not represent the entire universe of possible investments within that asset class. And further, that there can be limitations and biases to indices such as survivorship, self reporting, and instant history.

Managed futures accounts can subject to substantial charges for management and advisory fees. The numbers within this website include all such fees, but it may be necessary for those accounts that are subject to these charges to make substantial trading profits in the future to avoid depletion or exhaustion of their assets.

Investors interested in investing with a managed futures program (excepting those programs which are offered exclusively to qualified eligible persons as that term is defined by CFTC regulation 4.7) will be required to receive and sign off on a disclosure document in compliance with certain CFT rules The disclosure documents contains a complete description of the principal risk factors and each fee to be charged to your account by the CTA, as well as the composite performance of accounts under the CTA's management over at least the most recent five years. Investor interested in investing in any of the programs on this website are urged to carefully read these disclosure documents, including, but not limited to the performance information, before investing in any such programs.

Those investors who are qualified eligible persons as that term is defined by CFTC regulation 4.7 and interested in investing in a program exempt from having to provide a disclosure document and considered by the regulations to be sophisticated enough to understand the risks and be able to interpret the accuracy and completeness of any performance information on their own.

RCM receives a portion of the commodity brokerage commissions you pay in connection with your futures trading and/or a portion of the interest income (if any) earned on an account's assets. The listed manager may also pay RCM a portion of the fees they receive from accounts introduced to them by RCM.

See the full terms of use and risk disclaimer here.