Bert Dohmen Blog | How Can You Protect Your Assets in 2019? | TalkMarkets
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Bert Dohmen is a serious analyst and a trader. You’ve probably seen him on national TV such as CNBC, Neil Cavuto’s show on FOXNEWS, CNN, or read his views in Barron’s, the Wall Street Journal, Investor’s Business Daily, Business Week, etc. He is a professional trader, ...more

How Can You Protect Your Assets in 2019?

Date: Monday, February 11, 2019 1:39 PM EDT

Most investors will have a tough time the next several years...

Confusion will be widespread. The volatility will disguise the deterioration below the surface.

And Wall Street will make sure to continue to spread a bullish message, regardless of what the facts show.

The individual investor will of course wonder what he/she should do.

Is it better to depend on newspaper articles or the analysts appearing on financial TV? Those are the cheapest sources of information.

But should you really rely on free, low-quality research to manage your investments and accumulated wealth?

Many have tried "bull market wonder" investment newsletters and managed accounts.

However, how do you know that these services have the experience to guide you through difficult times, when they mainly made money while the market went up?

You Have To Make Sure You, Or Your Adviser, Does Not Simply Follow The "Herd."

During the bull market, “Robo-investing” had become very popular. When one large brokerage started their own robo-advisor program about a decade ago, I asked the person in charge if they change their allocations during a bear market.

The answer was “no.”

In other words, they would stay with ETFs that did well in a bull market. Usually these brokerage firms perform the worst in a bear market.

After speaking with a number of these firms, we concluded that the longevity of this fad will last until the next bear market.

Once people have lost substantial portions of their wealth, the lawsuits will fly in and Robo-investing will get thrown into the “junk heap” of failed financial experiments.

You can, of course, just pick a handful of ETFs and hope for the best. But it’s imperative that you make a substantial change when the bear market becomes evident.

The loss in global stocks since the top in January 2018 has been an amazing $19.9 trillion in market value, with the biggest losses coming in the final few months of 2018. That’s close to the entire annual GDP of the U.S. of over $20 trillion.

Yet, many analysts called this disaster “a dip” or a “pullback.”

Really? Since when a $20 trillion loss become a simple “dip” in the market? 

However, one elite group of investors was safeguarded ahead of the plunge and even made nice profits during the selloff.

Click here to continue reading this article…

 

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