Wealth Advisors in Westlake Village, CA

Serving residents in both Westlake Village and Thousand Oaks, CA.

• 70% of people do not trust banks and mutual funds
• 60% have lost faith in the stock market
• 44% said they are unlikely to ever put money in the stock market again (Forbes, 2011)

“Buy and Hold” is a primary tenet of the Modern Portfolio Theory (MPT). Developed in 1952, its creators won a Nobel Prize in Economic Sciences (Investopedia, 2012). Financial and wealth advisors widely subscribe to the model as a long-term investment strategy – trusting that over time, a portfolio will perform with minimal management. That’s all well and good as long as the financial markets produce a good rate of return, despite small periods of volatility (Brandes Institute).

Until the next financial crisis. BECAUSE WE ALL KNOW THAT ANYTHING CAN HAPPEN.

MPT states that the odds of the Dow falling 7.7% in one day are 1 in 50 billion (Short III, 2009). Let’s put that in perspective:

• That equates to once every 13.7 million years
• Dinosaurs became extinct roughly 65 million years ago
• Man arrived on the scene in his earliest form approximately 5 million years ago

So, essentially, MPT predicts that the devastating Dow plunge of 7.7% in one day would happen once in a world’s existence – yes, only once in all of mankind!

It actually happened 4 times in 2008 alone, for a grand total of 12 times in the last century (Short III, 2009).

Learn more about the timeline of investing in our report, “The 5 Dangers That May Cause You to Lose 50% of Your Net Worth In One Day”. Fill out the form in the top right to gain access to this free report now!

Sorensen Wealth Management takes hope out of the equation for investment solutions. Located in Westlake Village, CA, we are an independent firm dedicated to growing wealth in the new economy. Request your free report to find out why many financial plans are destined to fail, and learn how you can grow your portfolio, even when faced with unpredictable events.

Buy, Hold, and Hope is not a Strategy

Many wealth advisors still recommend a “buy and hold” strategy and hold assets for years to weather the ups and downs of the market. Unfortunately, the underlying assumptions of “buy and hold” have been proven to be false, resulting in underperforming portfolios.

New research indicates that an investor using “buy and hold” may have to wait as much as 40 years for extended long-term averages to be realized (Brown, 2012). Very few investors can wait this long to reap their gains or to begin their retirement.

High-frequency trading now accounts for 70% of market volume on a daily basis. In the 1980s, the average holding period for U.S. stocks was two years. Now it is just 2.8 months (CNBC, 2011). Sorensen Wealth Management’s proactive wealth advisors can recommend investment solutions for today’s financial climate. Request your free report to learn more about the new rules for investing.