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The CIM Difference
Traditional Approaches May Have Limitations...
Conventional wisdom on Wall Street is to stay fully invested regardless of the overall risk in
the market. The Wall Street philosophy being that all asset classes performance will
eventually return to average returns over the long run cycle.
The reality is that it may take decades for a market to recover severe losses or work off the
excesses of the past when major corrections take place. During the past decade, when stock
market volatility increased the value of most stocks decreased and portfolios utilizing a buy
and hold or fixed allocation strategy experienced significant losses due to lack of flexibility.
The table below shows the return required to break even after a portfolio suffers a
significant loss:
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A portfolio that suffers large and
severe losses needs to generate
much higher returns to break even.
If investors are able to avoid
severe losses, they are more likely
to achieve greater long term wealth.
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-10%
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11%
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-20%
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25%
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-30%
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43%
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-40%
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67%
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-50%
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100%
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-60%
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150%
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-70%
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233%
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-90%
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900%
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Unlike buy and hold or fixed allocation strategies, our InvestFlex™ Strategies use a flexible
approach that dynamically adjusts portfolio allocations and risk to meet current market
conditions.
Our proprietary Dynamic Asset Allocation approach is a systematic process that Seeks
Opportunity across a broad range of investments while employing Active Risk Management
to reduce the risk of losing significant value during volatile market periods.
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