subject: Getting Over It! It May Be Time to Change Advisors [print this page] Author: Jeffrey Diercks Author: Jeffrey Diercks
Last week I took my car into the repair shop. It was a new repair shop and I had quite frankly been putting off going to this shop, even though it had been highly recommended. Friends told me about their positive experiences, how the owners were conscientious, very reasonably priced and that I would get far better service than the at the auto dealerships. Yet for some reason I put it off going to see them until my car finally died last week. Isnt that just human nature? We wait until the situation seems hopeless to change whether an auto mechanic or something as important as an investment advisor. Why? The answer is simple! The devil you know is more comfortable than the devil you dont. If you are experiencing pain today, why risk experiencing even more pain? We tend to focus on the negative rather than the positive a change could bring us. How many individuals are doing the same with their investment advisors in a dangerous game that could affect your financial future? You may be saying to yourself, but my advisor did well last year. That may be true, but the bigger question is how did he do in 2008? We are in a secular bear market and stock indexes moves, both up and down, are exaggerated. Big market moves up are followed by big moves down and vice versa. The overall trend of the market according to Crestmont Research during these periods is basically sideways, see Secular Stock Markets Explained. Did you know the market averages as measured by the S&P 500 dropped some 54% in the 2007-2008 bear market? Lets say you were fortunate enough to capture the full 60%+ recovery in the market from the March 2009 lows to date. Did you know that you are still more than 25% below where you were in October 2007, assuming you stayed completely invested throughout that time period? Did you know that the rally off the March 2009 market lows already ranks as larger than any bear market rally from the Depression-Era? See the Chart of the Day Depression-Ear Bear Market Rallies. Now this rally may continue for the next one or two quarters, but lets face it nothing goes straight up. If your advisor hurt you in 2008 and has not done anything to change his/her investment process its time to move on or at least diversify your asset management between multiple advisors. InTrust Advisors has a multi-day email series that might help called Five Days to a World Class Investment Advisor. This email series may be just what you need to get you motivated to secure your future today. You can sign up at www.intrustadvisors.com. Finding an investment advisor that can earn high returns in a strong bull market is not your challenge. Its finding an advisor that will protect your capital when markets are colliding. That is the challenge!About the Author:
Jeff Diercks is Managing Director of InTrust Advisors, an investment boutique that offers trend following solutions that attempt to adapt to prevailing market trends in just about any environment. The firm utilizes ETF securities to implement its trend following ideas with solutions that fit both high net worth and institutional client needs. All of its separate account solutions offer full transparency of positions and complete liquidity.
