Ghosts of Markets Past Have a Word of Caution

2011 lows in the S&P 500 were hit only 5 days ago, but with the market (despite being down today) up 5% from that point, the collective sigh of relief out of investors is nearly audible. However, with Europe’s Great White Hope (also known as Angela Merkel) creating uncertainty over the extent of losses to be accrued as the continent unravels, and the U.S. struggling over a potential jobs bill with thousands in protest chanting in the background, there is no guarantee this bounce will stay around in the coming month… or week… or 15 minutes.

In other words, if this bounce has helped you, now may be the time to consider ways to try and protect your capital in case it’s a short-lived burst and we head back down to new lows. Do not be that person who looks back and says, “If only I’d diversified when…” We actually gave this advice earlier this year– back in March before things started coming unhinged.

We’re here to recommend you not be the average investor who looks back after a sell off and says, “I shoulda/coulda/woulda diversified before this mess.” It’s like buying insurance for your cell phone. It doesn’t seem necessary when you first buy it… until your new phone gets dropped into a puddle and you’re paying for replacement out of pocket. You’ll probably buy the insurance the second time around, but how nice would it have been had you just purchased it before?

That being said, diversification isn’t going to protect you from everything. There’s no guarantee of profits in managed futures or any other investment out there (unless you’re buying a scam, that is). In an uncharted economic climate especially, past performance is not necessarily indicative of future results. However, from what we’ve seen, the investors that have been most successful in the past are the ones who diversified when everyone else was out designing rally caps.

Disclaimer: Past performance is not necessarily indicative of future results. Data Source: Yahoo Finance

It is not often in life that we get a second chance, or a third, or a fourth. So if you were one of the people wishing you had diversified during the ’08 market crash, or after the current nonsense hit in August – now may be a time to consider doing it for real this time – just in case it’s worse than before.

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Disclaimer
The performance data displayed herein is compiled from various sources, including BarclayHedge, RCM's own estimates of performance based on account managed by advisors on its books, 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, RCM's own estimates of performance based on account managed by advisors on its books, 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.