Markets Go Up, We’re Geniuses! But as Markets Crash 30, 40, 50%, the “Genius” Disappears, Fortunes are Lost & Many Wonder Why…. Simply, – Very Few Know How To Apply the Major Advances of the Past Few Years for Measuring RISK Before Deploying Their Capital….
The Time Has Long Passed for an Open, Honest Conversation on How To More Accurately Define, Measure & Score Investing RISKS….. To Begin ~
~ It ain’t what you don’t know that gets you into trouble... it’s what you know for sure that just ain’t so ~
~ Quote from the Oscar-winning film “The Big Short“, a story of the 2007-08 financial bubble made worse by mass delusion
Complex formulas are applied by those at the very top of the elite investing world. If these same formulas are not applied by American retail investors to analyze how their current investments reacted during the last financial crisis thru today, then how can anyone understand the RISKS hidden in a given investment?
For Instance, As Markets Drop 30% to 50%… So Do Retail Portfolio Values… Yet The Fact Is, Many Financial Elites Who Knew to Apply These Complex RISK Measuring Formulas Still Profited In Down Markets… Does It Make Sense to Start Learning More About This?
Is it possible what “We Think We Know for Sure” about Measuring & Scoring “RISK vs Returns” Is Incomplete At Best, Has Been for Many Years & Is Not Wise To Rely On When Assessing RISK Prior To Deploying Capital In A More Effective Manner ? I ask because,
As Tech Stocks Began Collapsing in March-2000, the S&P 500 Eventually Lost +/- 50% from Its High….
…. And, the US Debt was [only] +/- $5.656-Trillion in January-2000
And as Housing Values Began Falling in October-07, the S&P 500 Ended Up Loosing +/- 57% from Its High….
…. And, US Debt had grown to +/- $9-Trillion by September-2007
Yet, as these huge wealth destroying events formed, very few recognized them as such & even fewer realized that they better get out of their way.
Due to this, isn’t it obvious the prior 60+ years of “Prevailing Wisdom” on Measuring & Scoring portfolio RISKS wasn’t really working all that great?
Do You Remember How Much Your Portfolio Lost During the 2000-’02 and/or 2007-’09 Crises?
Don’t Remember? Maybe the S&P 500 charts below will help refresh your memory….
Notice, it took +/- 13-years for the S&P 500 to Return to & Sustain its March-2000 High….
And it took over 5 1/2-years for the S&P 500 to Return to & Sustain its October-2007 High….
S&P 500 Chart of the March-2000 Tech Peak vs the Oct-2002 Bottom; the Oct-2007 Realty Peak vs Feb-2009 Bottom; and, the March-2013 point where the S&P Returns to its Oct-2007 High. [Chart Courtesy of Tradingview.com]
And a 2nd Chart Showing How the SPDR S&P 500 ETF performed over the same time frames as in the above S&P 500 chart. [Chart Courtesy of Yahoo.Finance]
Since early 2013, the Markets have grown to Historic Highs…. while simultaneously, US Debt levels passed $33-Trillion in September-2023!!
And now, high level CEO’s & Bankers are effectively warning, “The Everything Bubble will turn into the Everything Collapse” as Bonds, Stocks, and both Residential & Commercial Real Estate are Faltering….
Based on these historic levels, have you or your advisor(s) taken the time to more comprehensively Measure the actual RISK associated with your Portfolio’s ability to perform as it performed during the Markets’ climb to their current highs?
Have you or your advisor(s) tried to more accurately Measure Portfolio RISKS from $33-Trillion+ of US Debt, the current Interest Rates, Excessive Consumer & Business Debt & more? If not, could it be time to find an expert who can more fully Measure & Score these RISKS before another market crisis strikes?
Multiple times over the past 30-years, markets have lost 20%, 30%, 40% & more. So, why do so many smart people keep loosing so much, so often?
Could a big part of the reason be that people in general & advisors in particular are not sufficiently skilled at properly Defining & Measuring RISK?
And yet, do you know there are experts skilled at Defining & Scoring RISK by utilizing advanced, comprehensive, rigorously applied complex mathematical formulas that more accurately identify hidden RISKS within Investments & Portfolios that can help mitigate potential losses during crisis times… while feasibly Generating Solid Yearly Returns?
So, how wise is it to continue Defining, Measuring & Scoring “RISK vs Reward” by applying similar “prevailing wisdoms” today that helped contribute to the 2000-’02 and/or ’07-’09 Losses?
Past Performance is Not Indicative of Future Results
At this point, regulations mandate the following be disclosed: Past performance is not indicative of future results, and there can be no assurance such returns described any place herein will ever be achieved again, or that any future structured products will achieve comparable results or that the Firm developing said future structured products will be able to implement its investment strategy, achieve its investment objectives or avoid losses. Furthermore, please be advised that all information presented herein on this topic by DJD Partners is for educational purposes only and is not to be considered in any manner whatsoever as investment advice as DJD Partners is not a securities dealer or broker, an investment adviser or financial adviser.
Without Prejudice, All Rights Reserved
With the disclosures being said, DJD Partners’ purpose is to provide educational information & insights to those who want to learn more about how select top-tier financial firms, that traditionally only serve the Financial Elite, develop customized designer structured financial products that have historically shown to be more RISK Adverse & Better Performing than most American Retail Investors and/or their Advisors currently believe is possible.
[Note: The financial elite are defined as those funds and/or people with at least $100-million Liquid Cash On Hand.]
To accomplish this purpose, DJD Partners is strategically aligned with an established non-Wall Street based boutique investment banking Firm [the Firm] whose work is equal to the most sophisticated of the sophisticated Wall Street based investment houses but with a very distinct differential ~
~ The Firm actually works FOR the Benefit of Retail Investors; whereas, time & again, so many top tier Wall Street houses arguably work AGAINST the Benefit of Retail Investors….
Founded in 2005, the Firm has continuously demonstrated the only place to objectively find good, solid investment performance is the arbitrage opportunities unique to private markets.
However, the industry challenge of realizing the performance levels the Firm has consistently achieved over the past 15-years is in the fact that most private market asset managers do not operate with the level of financial expertise and sophistication required to optimally and consistently take advantage of the arbitrage….
Due to this, the Firm offers its expertise in a manner that delivers true Risk-Adjusted Performance (including Illiquidity Premia) that can significantly exceed what is otherwise available thru the traditional public capital markets.
To demonstrate, the Firm’s designer structured products generated RISK Adjusted Performance Returns during the 2007 – 2009 crisis of:
+ 26.32% for 2007; + 32.07% for 2008; and, + 41.56% for 2009…. and has achieved 20% plus returns each calendar year since ’09.
[NOTE: With no guarantee of repeating these performances in any future time frame, the above cumulative, annually compounded results for an initial $10,000 returned +/-$13,616 by Year End 2009 [or a total of $23,616.]
While the S&P 500’s annually compounded, capitalized Returns during ’07, ’08 & ’09 = – 15.96%; and, the
FTSE NAREIT Real Estate Index’s annually compounded, capitalized Returns for ’07, ’08 & ’09 = – 34.36%
[NOTE: The Firm’s above stated results are before costs & fees. Additionally, the Firm mandates that all year end results be audited by an independent 3rd party auditing firm for accuracy & accountability.]
If you’ve read this far & would like to learn more about “Reducing RISK, Building & Preserving Wealth” or our additional Financial Solutions for these complex times, Please Continue ~ ~ ~
**DJD Partners’ Financial & Wealth Building Solutions **
First ~ Investing RISK can never be eliminated as even savings accounts, CD’s & money markets have RISK – the RISK is small, but it’s there. Second ~ NOBODY can tell the future about how to successfully navigate the current financial climate – only charlatans will try. Third ~ Today, there are experts who are skilled at rigorously applying a level of complex mathematical formulas [AKA quantitative analysis]…
DJD Partners draws on a vast, experienced network of dozens of lenders to source & secure loan approvals that competitors typically can’t match. We specialize in a variety of Business loans sized from $500,000 to $10,000,000. And for Commercial Real Estate properties, there are long standing relationships with Pension Funds, Insurance Companies, Institutional & Agency …
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