INSERT INTO `wp_posts` VALUES (8333,3,'2021-06-11 15:17:02','2021-06-11 15:17:02','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8270,\"mediaLink\":\"https://ns2020-investech.investech.com/rollercoaster-qac9q3pwhwg-unsplash/\",\"mediaType\":\"image\",\"mediaWidth\":38} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 38%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/rollercoaster-qac9Q3pWHWg-unsplash-1024x768.jpg\" alt=\"\" class=\"wp-image-8270 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>Tempted by high-flying ETFs in this aging bull market? </h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Just remember… Excitement is highest as the roller coaster goes over the top!</h2>\n<!-- /wp:heading --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public. As indicated by the headlines below, passive index investing has become all the rage, and Exchange Traded Funds (ETFs) are the tool of choice:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>ETFs could see $1 trillion in inflows over the coming year</strong></p><cite>MarketWatch, 1/31/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Small investors’ move to ‘passive’ stock funds becomes a stampede</strong> </p><cite>LA Times, 4/9/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Global ETF assets reach $4tn</strong> <em>The global exchange traded fund industry smashed past $4tn in assets last month…</em> </p><cite>Financial Times, 5/10/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:paragraph {\"placeholder\":\"Content…\"} -->\n<p>And our personal favorite...</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Wheee! A Quadruple-Leveraged S&amp;P 500 ETF is Here</strong></p><cite>Barron\'s, 5/3/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading {\"level\":3} -->\n<h3>Exchange Traded Fund (ETF)</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Exchange Traded Fund (ETF) was launched in 1993, and although they were slow to start, ETFs have proliferated over the last decade, both in number (see graph at right) and the variety of index funds available. There’s now an ETF for nearly every strategy, no matter how esoteric, and that has helped fuel the passive investing craze.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:image {\"align\":\"center\",\"id\":4829,\"sizeSlug\":\"full\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/number-of-etfs.png\" alt=\"Graph showing the number of ETFs (registered in the U.S.), Source: Investment Company Institute\" class=\"wp-image-4829\"/><figcaption>Number of ETFs (registered in the U.S.), Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p>Over the past 24 years, one can see the shift in interest from actively managed mutual funds toward passive investing. As shown in the graph below, net cash flows into actively managed funds were still four times larger than passive funds from 1993 through 2000. From 2001 through 2008, a change becomes evident as net cash flows for active funds turned negative while passive funds continued to grow. The disparity between the active and passive net cash flows during the current bull market (2009-2016) is remarkable, and it shows why there’s been a parabolic increase in the number of ETFs!</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4831,\"width\":713,\"height\":397} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Active-vs-Passive-Stock-Funds-Inflows.png\" alt=\"Graph showing net cash flows into actively managed funds between 1993 and 2016.\" class=\"wp-image-4831\" width=\"713\" height=\"397\"/><figcaption>Active vs. Passive Domestic Stock Funds; Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading -->\n<h2><strong>So, why has passive investing become all the rage in recent years?</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:quote {\"align\":\"center\",\"className\":\"is-style-default\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center is-style-default\"><p>Excitement is Highest as the Roller Coaster Goes Over the Top.</p><cite>– Anonymous</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Many investors have been burned –not once, but twice– by the Tech Bubble of the 1990s and the Housing Bubble in 2007. Also, they are frustrated with the challenges of managing investments… a task that in this uncertain bull market has frequently seemed counterproductive.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The most popular index funds are touted as low-cost and broadly diversified, with a portfolio full of blue chip stocks. Moreover, ETFs offer “instant liquidity” with intraday trading compared to mutual funds that only settle at the end of each trading day. To the average investor, passive funds with minimal fees, implied safety, and lots of liquidity may appear to be the Holy Grail. As we’ll see, however, there is more to the story…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":4839,\"mediaType\":\"image\",\"mediaWidth\":43,\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 43%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Total-Assets-Domestic-Equity-Index-Funds.png\" alt=\"Graph showing the total assets in Domestic Equity Index Funds, 1990\'s to 2016\" class=\"wp-image-4839 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph -->\n<p>Just as the number of ETFs has grown, the past few years have witnessed an explosion in assets tied to passive investing that has extended to both mutual funds and ETFs (as shown in graph at right). A large part of the growth has been in ETFs, which are poised to overtake index mutual funds as the preferred indexing vehicle. Both types of products have doubled in assets just since 2012.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>It is important to recognize that passive investing is not a fresh new idea; in fact, the concept was introduced by John Bogle (the founder of Vanguard) in the 1970s. This strategy has shifted in and out of favor, becoming more popular as bull markets age and losing its luster only after the damage has been done by the next bear market. Just like riding a roller coaster, the peak in public enthusiasm often comes as the bull market is cresting the top.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>A Trip Back in Time…</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The rise in the popularity of index funds has been seen before.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote {\"align\":\"center\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center\"><p>It’s like deja vu all over again.</p><cite>- Yogi Berra</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The late 1990s: </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As the decade of the 1990s became the longest bull market in Wall Street history, the Tech Bubble wasn’t the only phenomenon catching investors’ attention. In 1998-99, headlines were touting the benefit of index investing as inflows reached record levels:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Saving for Retirement Index Fever</strong></p><cite> Fortune, 11/9/98</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Who Needs a Money Manager?</strong></p><cite>Business Week 2/22/99</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\"><!-- wp:paragraph -->\n<p>In <strong>March 1999</strong>, InvesTech Research published the issue shown at right, <a href=\"https://ns2020-investech.investech.com/subscriber-library/lemming-principle/\">comparing the emotional influx of index investors to lemmings</a>. However, instead of falling off a cliff, index investors fell into the largest bear market since the 1930s (the S&amp;P 500 Index lost -49.1%).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Fast-forward to 2006-07:</strong> Index investing was even <em>more</em> popular at the peak of the last bull market (also one of the longer bull markets of the past 80 years):</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:image {\"align\":\"center\",\"id\":4840,\"width\":195,\"height\":201,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/V99I04-216x300.png\" alt=\"InvesTech Research newsletter, &quot;The Lemming Principle,&quot; March 12, 1999\" class=\"wp-image-4840\" width=\"195\" height=\"201\"/><figcaption>InvesTech Research newsletter, \"The Lemming Principle,\" March 12, 1999</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index Funds: So Hot Right Now</strong></p><cite>The Motley Fool, 12/11/06</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index funds help you avoid risks of stock selection, market timing</strong></p><cite>Boston Globe, 2/27/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Owning the S&amp;P 500 is cheap, easy and smart</strong></p><cite>USA Today, 7/20/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:paragraph -->\n<p>In these previous periods, much like today, most investors perceived index funds – particularly the S&amp;P 500 Index funds – to be more diversified, safer investments.  We’ll discuss why index funds may not be all they’re thought to be…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Dark Side of Passive Investing – Live by the Index, Die by the Index</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As noted, history shows that index investing reaches the highest level of popularity in aging bull markets or near market peaks. The reason for this is that any type of “risk management” during a bull market tends to reduce or moderate a fund manager’s return. Consequently, it is not uncommon for a fully invested S&amp;P 500 Index fund to outperform most actively managed mutual funds and money managers when measured solely over the duration of a bull market.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are multiple reasons index or passive investing becomes more popular in an aging bull market. First, it is more comfortable. One doesn’t have the burden of making decisions about which stocks to invest in, or when to sell a stock if it rises or falls precipitously. Indexing also tends to remove the regret from bad decisions, because any loss can be attributed entirely to the market. Lastly, investing in an index fund is the cheapest and easiest way to take advantage of the market’s stellar gains which seem likely to continue. Yet before jumping into the indexing mania today, consider these inherent risks in passive investing…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>By definition, index funds also guarantee that you will suffer 100% of the next bear market’s decline. Regardless of which index you are matching, the index fund is required to stay fully invested regardless of market risk or volatility.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Assets flowing into the most popular index funds are funneling investments into the largest and most overvalued stocks in the market, driving them higher. The S&amp;P 500 is a capitalization weighted index, so money invested into these popular index funds is not evenly distributed in all 500 stocks. Rather, the largest companies by market cap receive a disproportionate amount of the investment. As a result, investors must take the good with the bad and favor the largest companies within the basket of 500 stocks, regardless of valuation and financial strength (or lack thereof).</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Market volatility increases when interest narrows to the index heavyweights. Only 50 stocks account for nearly 50% of S&amp;P 500 capitalization and one-half of an index fund’s portfolio. Additionally, the top 10 largest stocks comprise over 20% of the Index. As a result, downside risk in the next bear market could increase if selling pressure hits the largest stocks at the same time. The increased focus on index investing of late may very well increase both the size of, and speed at which the next bear market decline occurs.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":8324,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/iShares-Core-SP-500-ETF.jpg\" alt=\"\" class=\"wp-image-8324\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Intraday liquidity for ETFs can experience dramatic structural challenges in times of market distress. For example, during the market dislocation on August 24, 2015 the liquidity of most ETFs all but dried up just as the market opened. A confluence of problems –including circuit breakers, an obscure NYSE rule allowing market makers to delay posting prices, and a lack of futures data for large hedgers– all combined to take the bid out of the ETF space. Even large, well-established ETFs like the $116 billion iShares Core S&amp;P 500 ETF (IVV) saw unprecedented declines. As shown on the graph below, IVV fell -26% on the open, far more than the -5.3% drop of the underlying S&amp;P 500. As a result of this liquidity hiccup, or “flash crash” as it was called at the time, investors with outstanding market orders and stop-loss orders sold their shares in IVV for far less than their worth.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading -->\n<h2>Bottom Line</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The broad diversification and implied liquidity offered by index ETFs gives many investors a false sense of security. When passively investing in an index, devoid of risk management, investors are still subject to varying degrees of valuation and liquidity risk, and they bear the full brunt of cyclical market risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Risk Management is Vital to any Strategy – <em>Ignore at your own peril!</em></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Many actively managed mutual funds and money managers take some steps to mitigate portfolio risk – at times to the detriment of bull market performance. Although passive indexing may appear to be easier and is also perceived to reduce risk, it ends up having the opposite effect during major downturns as it guarantees an investor will experience all of the losses in the corresponding market index. Remember, long-term performance is dependent not only on how much you make in the bull markets, but also how much you give back in the bear markets. Investments that are weighted toward the largest, most overvalued stocks and sectors are exactly the opposite of what might be used in a strategy that manages risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Index investing proponents generally downplay stock market cycles, but bear market survivability is a very real issue for many investors, particularly those in or nearing retirement. The decision to hold the course on an investment strategy usually depends on the severity of bear market losses and how long one’s portfolio remains underwater… in other words, how much time it takes to recover those losses.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To effectively demonstrate this concept, the Ulcer Index was developed in 1987 by Peter Martin to measure the depth and duration of drawdowns from earlier highs in one’s portfolio. It provides a graphic illustration of the level of stress and ulcers (hence the name) that can emerge from suffering deep, prolonged losses in one’s retirement savings.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Shown below are the comparative Ulcer Index graphs of the InvesTech Model Portfolio versus the Vanguard Total Stock Market Index (VTSMX), which is the largest and most popular fund on the market today.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":8329,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/IT-Portfolio-vs-Vanguard-Ulcer-Index.jpg\" alt=\"\" class=\"wp-image-8329\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The starts of the last two bear markets are noted in March 2000 and October 2007, as well as their subsequent market bottoms in October 2002 and March 2009. The green dashed lines illustrate the number of months required after the market bottom for one’s portfolio to recover the losses. Above all, the red shaded areas designate how long, and how deep one’s portfolio was underwater. These are the so-called “ulcer” zones when an investor must wait and wonder how long it will be before his portfolio is whole again.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As you’ll note, InvesTech’s “risk management” strategy dramatically reduced the stress of the last two generational bear markets by limiting the time spent in the “ulcer” zones. While the InvesTech Model Portfolio didn’t outperform the Vanguard Total Stock Market Index Fund in the bull markets, our ability to manage and reduce risk provided a long-term return which more than doubled that of the Vanguard index fund. More importantly, InvesTech subscribers lost significantly less and recovered much more quickly during bear markets, avoiding the urge to panic out of the market at the wrong time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is this combination of achieving safe returns and managing downside risk that matters most in the long-term performance of one’s portfolio… and in the survivability of bear markets.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:uagb/inline-notice {\"block_id\":\"04328f4a\",\"noticeContent\":\"\\u003cp\\u003ePast performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  \\u003ca href=\\u0022https://ns2020-investech.investech.com/terms-of-use/\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003eRead full Disclosures here\\u003c/a\\u003e\\u003ca href=\\u0022http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003e.\\u003c/a\\u003e\\u003c/p\\u003e\"} -->\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-04328f4a\"><h4 class=\"uagb-notice-title\">Important Disclosure Information</h4><div class=\"uagb-notice-text\"><p>Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  <a href=\"https://ns2020-investech.investech.com/terms-of-use/\" target=\"_blank\" rel=\"noreferrer noopener\">Read full Disclosures here</a><a href=\"http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\" target=\"_blank\" rel=\"noreferrer noopener\">.</a></p></div></div>\n<!-- /wp:uagb/inline-notice -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:paragraph -->\n<p>First published in our June 16, 2017 issue. Also available to read in PDF format: <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/IndexingFever.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF.</a></p>\n<!-- /wp:paragraph -->','Passive Investing: Inevitable Black Eye','Tempted by high-flying ETFs in this aging bull market? Just remember… Excitement is highest as the roller coaster goes over the top! In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public.','inherit','closed','closed','','2468-revision-v1','','','2021-06-11 15:17:02','2021-06-11 15:17:02','',2468,'https://ns2020-investech.investech.com/?p=8333',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8334,3,'2021-06-11 15:17:41','2021-06-11 15:17:41','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8270,\"mediaLink\":\"https://ns2020-investech.investech.com/rollercoaster-qac9q3pwhwg-unsplash/\",\"mediaType\":\"image\",\"mediaWidth\":38} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 38%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/rollercoaster-qac9Q3pWHWg-unsplash-1024x768.jpg\" alt=\"\" class=\"wp-image-8270 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>Tempted by high-flying ETFs in this aging bull market? </h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Just remember… Excitement is highest as the roller coaster goes over the top!</h2>\n<!-- /wp:heading --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public. As indicated by the headlines below, passive index investing has become all the rage, and Exchange Traded Funds (ETFs) are the tool of choice:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>ETFs could see $1 trillion in inflows over the coming year</strong></p><cite>MarketWatch, 1/31/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Small investors’ move to ‘passive’ stock funds becomes a stampede</strong> </p><cite>LA Times, 4/9/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Global ETF assets reach $4tn</strong> <em>The global exchange traded fund industry smashed past $4tn in assets last month…</em> </p><cite>Financial Times, 5/10/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:paragraph {\"placeholder\":\"Content…\"} -->\n<p>And our personal favorite...</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Wheee! A Quadruple-Leveraged S&amp;P 500 ETF is Here</strong></p><cite>Barron\'s, 5/3/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading {\"level\":3} -->\n<h3>Exchange Traded Fund (ETF)</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Exchange Traded Fund (ETF) was launched in 1993, and although they were slow to start, ETFs have proliferated over the last decade, both in number (see graph at right) and the variety of index funds available. There’s now an ETF for nearly every strategy, no matter how esoteric, and that has helped fuel the passive investing craze.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:image {\"align\":\"center\",\"id\":4829,\"sizeSlug\":\"full\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/number-of-etfs.png\" alt=\"Graph showing the number of ETFs (registered in the U.S.), Source: Investment Company Institute\" class=\"wp-image-4829\"/><figcaption>Number of ETFs (registered in the U.S.), Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p>Over the past 24 years, one can see the shift in interest from actively managed mutual funds toward passive investing. As shown in the graph below, net cash flows into actively managed funds were still four times larger than passive funds from 1993 through 2000. From 2001 through 2008, a change becomes evident as net cash flows for active funds turned negative while passive funds continued to grow. The disparity between the active and passive net cash flows during the current bull market (2009-2016) is remarkable, and it shows why there’s been a parabolic increase in the number of ETFs!</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4831,\"width\":713,\"height\":397} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Active-vs-Passive-Stock-Funds-Inflows.png\" alt=\"Graph showing net cash flows into actively managed funds between 1993 and 2016.\" class=\"wp-image-4831\" width=\"713\" height=\"397\"/><figcaption>Active vs. Passive Domestic Stock Funds; Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading -->\n<h2><strong>So, why has passive investing become all the rage in recent years?</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:quote {\"align\":\"center\",\"className\":\"is-style-default\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center is-style-default\"><p>Excitement is Highest as the Roller Coaster Goes Over the Top.</p><cite>– Anonymous</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Many investors have been burned –not once, but twice– by the Tech Bubble of the 1990s and the Housing Bubble in 2007. Also, they are frustrated with the challenges of managing investments… a task that in this uncertain bull market has frequently seemed counterproductive.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The most popular index funds are touted as low-cost and broadly diversified, with a portfolio full of blue chip stocks. Moreover, ETFs offer “instant liquidity” with intraday trading compared to mutual funds that only settle at the end of each trading day. To the average investor, passive funds with minimal fees, implied safety, and lots of liquidity may appear to be the Holy Grail. As we’ll see, however, there is more to the story…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":4839,\"mediaType\":\"image\",\"mediaWidth\":43,\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 43%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Total-Assets-Domestic-Equity-Index-Funds.png\" alt=\"Graph showing the total assets in Domestic Equity Index Funds, 1990\'s to 2016\" class=\"wp-image-4839 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph -->\n<p>Just as the number of ETFs has grown, the past few years have witnessed an explosion in assets tied to passive investing that has extended to both mutual funds and ETFs (as shown in graph at right). A large part of the growth has been in ETFs, which are poised to overtake index mutual funds as the preferred indexing vehicle. Both types of products have doubled in assets just since 2012.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>It is important to recognize that passive investing is not a fresh new idea; in fact, the concept was introduced by John Bogle (the founder of Vanguard) in the 1970s. This strategy has shifted in and out of favor, becoming more popular as bull markets age and losing its luster only after the damage has been done by the next bear market. Just like riding a roller coaster, the peak in public enthusiasm often comes as the bull market is cresting the top.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>A Trip Back in Time…</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The rise in the popularity of index funds has been seen before.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote {\"align\":\"center\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center\"><p>It’s like deja vu all over again.</p><cite>- Yogi Berra</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The late 1990s: </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As the decade of the 1990s became the longest bull market in Wall Street history, the Tech Bubble wasn’t the only phenomenon catching investors’ attention. In 1998-99, headlines were touting the benefit of index investing as inflows reached record levels:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Saving for Retirement Index Fever</strong></p><cite> Fortune, 11/9/98</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Who Needs a Money Manager?</strong></p><cite>Business Week 2/22/99</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\"><!-- wp:paragraph -->\n<p>In <strong>March 1999</strong>, InvesTech Research published the issue shown at right, <a href=\"https://ns2020-investech.investech.com/subscriber-library/lemming-principle/\">comparing the emotional influx of index investors to lemmings</a>. However, instead of falling off a cliff, index investors fell into the largest bear market since the 1930s (the S&amp;P 500 Index lost -49.1%).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Fast-forward to 2006-07:</strong> Index investing was even <em>more</em> popular at the peak of the last bull market (also one of the longer bull markets of the past 80 years):</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:image {\"align\":\"center\",\"id\":4840,\"width\":195,\"height\":201,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/V99I04-216x300.png\" alt=\"InvesTech Research newsletter, &quot;The Lemming Principle,&quot; March 12, 1999\" class=\"wp-image-4840\" width=\"195\" height=\"201\"/><figcaption>InvesTech Research newsletter, \"The Lemming Principle,\" March 12, 1999</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index Funds: So Hot Right Now</strong></p><cite>The Motley Fool, 12/11/06</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index funds help you avoid risks of stock selection, market timing</strong></p><cite>Boston Globe, 2/27/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Owning the S&amp;P 500 is cheap, easy and smart</strong></p><cite>USA Today, 7/20/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:paragraph -->\n<p>In these previous periods, much like today, most investors perceived index funds – particularly the S&amp;P 500 Index funds – to be more diversified, safer investments.  We’ll discuss why index funds may not be all they’re thought to be…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Dark Side of Passive Investing – Live by the Index, Die by the Index</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As noted, history shows that index investing reaches the highest level of popularity in aging bull markets or near market peaks. The reason for this is that any type of “risk management” during a bull market tends to reduce or moderate a fund manager’s return. Consequently, it is not uncommon for a fully invested S&amp;P 500 Index fund to outperform most actively managed mutual funds and money managers when measured solely over the duration of a bull market.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are multiple reasons index or passive investing becomes more popular in an aging bull market. First, it is more comfortable. One doesn’t have the burden of making decisions about which stocks to invest in, or when to sell a stock if it rises or falls precipitously. Indexing also tends to remove the regret from bad decisions, because any loss can be attributed entirely to the market. Lastly, investing in an index fund is the cheapest and easiest way to take advantage of the market’s stellar gains which seem likely to continue. Yet before jumping into the indexing mania today, consider these inherent risks in passive investing…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>By definition, index funds also guarantee that you will suffer 100% of the next bear market’s decline. Regardless of which index you are matching, the index fund is required to stay fully invested regardless of market risk or volatility.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Assets flowing into the most popular index funds are funneling investments into the largest and most overvalued stocks in the market, driving them higher. The S&amp;P 500 is a capitalization weighted index, so money invested into these popular index funds is not evenly distributed in all 500 stocks. Rather, the largest companies by market cap receive a disproportionate amount of the investment. As a result, investors must take the good with the bad and favor the largest companies within the basket of 500 stocks, regardless of valuation and financial strength (or lack thereof).</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Market volatility increases when interest narrows to the index heavyweights. Only 50 stocks account for nearly 50% of S&amp;P 500 capitalization and one-half of an index fund’s portfolio. Additionally, the top 10 largest stocks comprise over 20% of the Index. As a result, downside risk in the next bear market could increase if selling pressure hits the largest stocks at the same time. The increased focus on index investing of late may very well increase both the size of, and speed at which the next bear market decline occurs.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":8324,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/iShares-Core-SP-500-ETF.jpg\" alt=\"\" class=\"wp-image-8324\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Intraday liquidity for ETFs can experience dramatic structural challenges in times of market distress. For example, during the market dislocation on August 24, 2015 the liquidity of most ETFs all but dried up just as the market opened. A confluence of problems –including circuit breakers, an obscure NYSE rule allowing market makers to delay posting prices, and a lack of futures data for large hedgers– all combined to take the bid out of the ETF space. Even large, well-established ETFs like the $116 billion iShares Core S&amp;P 500 ETF (IVV) saw unprecedented declines. As shown on the graph below, IVV fell -26% on the open, far more than the -5.3% drop of the underlying S&amp;P 500. As a result of this liquidity hiccup, or “flash crash” as it was called at the time, investors with outstanding market orders and stop-loss orders sold their shares in IVV for far less than their worth.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading -->\n<h2>Bottom Line</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The broad diversification and implied liquidity offered by index ETFs gives many investors a false sense of security. When passively investing in an index, devoid of risk management, investors are still subject to varying degrees of valuation and liquidity risk, and they bear the full brunt of cyclical market risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Risk Management is Vital to any Strategy – <em>Ignore at your own peril!</em></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Many actively managed mutual funds and money managers take some steps to mitigate portfolio risk – at times to the detriment of bull market performance. Although passive indexing may appear to be easier and is also perceived to reduce risk, it ends up having the opposite effect during major downturns as it guarantees an investor will experience all of the losses in the corresponding market index. Remember, long-term performance is dependent not only on how much you make in the bull markets, but also how much you give back in the bear markets. Investments that are weighted toward the largest, most overvalued stocks and sectors are exactly the opposite of what might be used in a strategy that manages risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Index investing proponents generally downplay stock market cycles, but bear market survivability is a very real issue for many investors, particularly those in or nearing retirement. The decision to hold the course on an investment strategy usually depends on the severity of bear market losses and how long one’s portfolio remains underwater… in other words, how much time it takes to recover those losses.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To effectively demonstrate this concept, the Ulcer Index was developed in 1987 by Peter Martin to measure the depth and duration of drawdowns from earlier highs in one’s portfolio. It provides a graphic illustration of the level of stress and ulcers (hence the name) that can emerge from suffering deep, prolonged losses in one’s retirement savings.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Shown below are the comparative Ulcer Index graphs of the InvesTech Model Portfolio versus the Vanguard Total Stock Market Index (VTSMX), which is the largest and most popular fund on the market today.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":8329,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/IT-Portfolio-vs-Vanguard-Ulcer-Index.jpg\" alt=\"\" class=\"wp-image-8329\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The starts of the last two bear markets are noted in March 2000 and October 2007, as well as their subsequent market bottoms in October 2002 and March 2009. The green dashed lines illustrate the number of months required after the market bottom for one’s portfolio to recover the losses. Above all, the red shaded areas designate how long, and how deep one’s portfolio was underwater. These are the so-called “ulcer” zones when an investor must wait and wonder how long it will be before his portfolio is whole again.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As you’ll note, InvesTech’s “risk management” strategy dramatically reduced the stress of the last two generational bear markets by limiting the time spent in the “ulcer” zones. While the InvesTech Model Portfolio didn’t outperform the Vanguard Total Stock Market Index Fund in the bull markets, our ability to manage and reduce risk provided a long-term return which more than doubled that of the Vanguard index fund. More importantly, InvesTech subscribers lost significantly less and recovered much more quickly during bear markets, avoiding the urge to panic out of the market at the wrong time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is this combination of achieving safe returns and managing downside risk that matters most in the long-term performance of one’s portfolio… and in the survivability of bear markets.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:uagb/inline-notice {\"block_id\":\"04328f4a\",\"noticeContent\":\"\\u003cp\\u003ePast performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  \\u003ca href=\\u0022https://ns2020-investech.investech.com/terms-of-use/\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003eRead full Disclosures here\\u003c/a\\u003e\\u003ca href=\\u0022http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003e.\\u003c/a\\u003e\\u003c/p\\u003e\"} -->\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-04328f4a\"><h4 class=\"uagb-notice-title\">Important Disclosure Information</h4><div class=\"uagb-notice-text\"><p>Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  <a href=\"https://ns2020-investech.investech.com/terms-of-use/\" target=\"_blank\" rel=\"noreferrer noopener\">Read full Disclosures here</a><a href=\"http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\" target=\"_blank\" rel=\"noreferrer noopener\">.</a></p></div></div>\n<!-- /wp:uagb/inline-notice -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:paragraph -->\n<p>First published in our June 16, 2017 issue. Also available to read in PDF format: <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/IndexingFever.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF.</a></p>\n<!-- /wp:paragraph -->','Passive Investing: Inevitable Black Eye','Tempted by high-flying ETFs in this aging bull market? Just remember… Excitement is highest as the roller coaster goes over the top! In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public.','inherit','closed','closed','','2468-revision-v1','','','2021-06-11 15:17:41','2021-06-11 15:17:41','',2468,'https://ns2020-investech.investech.com/?p=8334',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8335,3,'2021-06-11 15:18:27','2021-06-11 15:18:27','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8270,\"mediaLink\":\"https://ns2020-investech.investech.com/rollercoaster-qac9q3pwhwg-unsplash/\",\"mediaType\":\"image\",\"mediaWidth\":38} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 38%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/rollercoaster-qac9Q3pWHWg-unsplash-1024x768.jpg\" alt=\"\" class=\"wp-image-8270 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>Tempted by high-flying ETFs in this aging bull market? </h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Just remember… Excitement is highest as the roller coaster goes over the top!</h2>\n<!-- /wp:heading --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public. As indicated by the headlines below, passive index investing has become all the rage, and Exchange Traded Funds (ETFs) are the tool of choice:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>ETFs could see $1 trillion in inflows over the coming year</strong></p><cite>MarketWatch, 1/31/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Small investors’ move to ‘passive’ stock funds becomes a stampede</strong> </p><cite>LA Times, 4/9/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Global ETF assets reach $4tn</strong> <em>The global exchange traded fund industry smashed past $4tn in assets last month…</em> </p><cite>Financial Times, 5/10/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:paragraph {\"placeholder\":\"Content…\"} -->\n<p>And our personal favorite...</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Wheee! A Quadruple-Leveraged S&amp;P 500 ETF is Here</strong></p><cite>Barron\'s, 5/3/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading {\"level\":3} -->\n<h3>Exchange Traded Fund (ETF)</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Exchange Traded Fund (ETF) was launched in 1993, and although they were slow to start, ETFs have proliferated over the last decade, both in number (see graph at right) and the variety of index funds available. There’s now an ETF for nearly every strategy, no matter how esoteric, and that has helped fuel the passive investing craze.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:image {\"align\":\"center\",\"id\":4829,\"sizeSlug\":\"full\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/number-of-etfs.png\" alt=\"Graph showing the number of ETFs (registered in the U.S.), Source: Investment Company Institute\" class=\"wp-image-4829\"/><figcaption>Number of ETFs (registered in the U.S.), Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p>Over the past 24 years, one can see the shift in interest from actively managed mutual funds toward passive investing. As shown in the graph below, net cash flows into actively managed funds were still four times larger than passive funds from 1993 through 2000. From 2001 through 2008, a change becomes evident as net cash flows for active funds turned negative while passive funds continued to grow. The disparity between the active and passive net cash flows during the current bull market (2009-2016) is remarkable, and it shows why there’s been a parabolic increase in the number of ETFs!</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4831,\"width\":713,\"height\":397} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Active-vs-Passive-Stock-Funds-Inflows.png\" alt=\"Graph showing net cash flows into actively managed funds between 1993 and 2016.\" class=\"wp-image-4831\" width=\"713\" height=\"397\"/><figcaption>Active vs. Passive Domestic Stock Funds; Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading -->\n<h2><strong>So, why has passive investing become all the rage in recent years?</strong></h2>\n<!-- /wp:heading -->\n\n<!-- wp:quote {\"align\":\"center\",\"className\":\"is-style-default\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center is-style-default\"><p>Excitement is Highest as the Roller Coaster Goes Over the Top.</p><cite>– Anonymous</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Many investors have been burned –not once, but twice– by the Tech Bubble of the 1990s and the Housing Bubble in 2007. Also, they are frustrated with the challenges of managing investments… a task that in this uncertain bull market has frequently seemed counterproductive.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The most popular index funds are touted as low-cost and broadly diversified, with a portfolio full of blue chip stocks. Moreover, ETFs offer “instant liquidity” with intraday trading compared to mutual funds that only settle at the end of each trading day. To the average investor, passive funds with minimal fees, implied safety, and lots of liquidity may appear to be the Holy Grail. As we’ll see, however, there is more to the story…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":4839,\"mediaType\":\"image\",\"mediaWidth\":43,\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 43%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Total-Assets-Domestic-Equity-Index-Funds.png\" alt=\"Graph showing the total assets in Domestic Equity Index Funds, 1990\'s to 2016\" class=\"wp-image-4839 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph -->\n<p>Just as the number of ETFs has grown, the past few years have witnessed an explosion in assets tied to passive investing that has extended to both mutual funds and ETFs (as shown in graph at right). A large part of the growth has been in ETFs, which are poised to overtake index mutual funds as the preferred indexing vehicle. Both types of products have doubled in assets just since 2012.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>It is important to recognize that passive investing is not a fresh new idea; in fact, the concept was introduced by John Bogle (the founder of Vanguard) in the 1970s. This strategy has shifted in and out of favor, becoming more popular as bull markets age and losing its luster only after the damage has been done by the next bear market. Just like riding a roller coaster, the peak in public enthusiasm often comes as the bull market is cresting the top.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>A Trip Back in Time…</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The rise in the popularity of index funds has been seen before.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote {\"align\":\"center\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center\"><p>It’s like deja vu all over again.</p><cite>- Yogi Berra</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The late 1990s: </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As the decade of the 1990s became the longest bull market in Wall Street history, the Tech Bubble wasn’t the only phenomenon catching investors’ attention. In 1998-99, headlines were touting the benefit of index investing as inflows reached record levels:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Saving for Retirement Index Fever</strong></p><cite> Fortune, 11/9/98</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Who Needs a Money Manager?</strong></p><cite>Business Week 2/22/99</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\"><!-- wp:paragraph -->\n<p>In <strong>March 1999</strong>, InvesTech Research published the issue shown at right, <a href=\"https://ns2020-investech.investech.com/subscriber-library/lemming-principle/\">comparing the emotional influx of index investors to lemmings</a>. However, instead of falling off a cliff, index investors fell into the largest bear market since the 1930s (the S&amp;P 500 Index lost -49.1%).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><strong>Fast-forward to 2006-07:</strong> Index investing was even <em>more</em> popular at the peak of the last bull market (also one of the longer bull markets of the past 80 years):</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:image {\"align\":\"center\",\"id\":4840,\"width\":195,\"height\":201,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/V99I04-216x300.png\" alt=\"InvesTech Research newsletter, &quot;The Lemming Principle,&quot; March 12, 1999\" class=\"wp-image-4840\" width=\"195\" height=\"201\"/><figcaption>InvesTech Research newsletter, \"The Lemming Principle,\" March 12, 1999</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index Funds: So Hot Right Now</strong></p><cite>The Motley Fool, 12/11/06</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index funds help you avoid risks of stock selection, market timing</strong></p><cite>Boston Globe, 2/27/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Owning the S&amp;P 500 is cheap, easy and smart</strong></p><cite>USA Today, 7/20/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:paragraph -->\n<p>In these previous periods, much like today, most investors perceived index funds – particularly the S&amp;P 500 Index funds – to be more diversified, safer investments.  We’ll discuss why index funds may not be all they’re thought to be…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Dark Side of Passive Investing – Live by the Index, Die by the Index</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As noted, history shows that index investing reaches the highest level of popularity in aging bull markets or near market peaks. The reason for this is that any type of “risk management” during a bull market tends to reduce or moderate a fund manager’s return. Consequently, it is not uncommon for a fully invested S&amp;P 500 Index fund to outperform most actively managed mutual funds and money managers when measured solely over the duration of a bull market.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are multiple reasons index or passive investing becomes more popular in an aging bull market. First, it is more comfortable. One doesn’t have the burden of making decisions about which stocks to invest in, or when to sell a stock if it rises or falls precipitously. Indexing also tends to remove the regret from bad decisions, because any loss can be attributed entirely to the market. Lastly, investing in an index fund is the cheapest and easiest way to take advantage of the market’s stellar gains which seem likely to continue. Yet before jumping into the indexing mania today, consider these inherent risks in passive investing…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>By definition, index funds also guarantee that you will suffer 100% of the next bear market’s decline. Regardless of which index you are matching, the index fund is required to stay fully invested regardless of market risk or volatility.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Assets flowing into the most popular index funds are funneling investments into the largest and most overvalued stocks in the market, driving them higher. The S&amp;P 500 is a capitalization weighted index, so money invested into these popular index funds is not evenly distributed in all 500 stocks. Rather, the largest companies by market cap receive a disproportionate amount of the investment. As a result, investors must take the good with the bad and favor the largest companies within the basket of 500 stocks, regardless of valuation and financial strength (or lack thereof).</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Market volatility increases when interest narrows to the index heavyweights. Only 50 stocks account for nearly 50% of S&amp;P 500 capitalization and one-half of an index fund’s portfolio. Additionally, the top 10 largest stocks comprise over 20% of the Index. As a result, downside risk in the next bear market could increase if selling pressure hits the largest stocks at the same time. The increased focus on index investing of late may very well increase both the size of, and speed at which the next bear market decline occurs.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":8324,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/iShares-Core-SP-500-ETF.jpg\" alt=\"\" class=\"wp-image-8324\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Intraday liquidity for ETFs can experience dramatic structural challenges in times of market distress. For example, during the market dislocation on August 24, 2015 the liquidity of most ETFs all but dried up just as the market opened. A confluence of problems –including circuit breakers, an obscure NYSE rule allowing market makers to delay posting prices, and a lack of futures data for large hedgers– all combined to take the bid out of the ETF space. Even large, well-established ETFs like the $116 billion iShares Core S&amp;P 500 ETF (IVV) saw unprecedented declines. As shown on the graph below, IVV fell -26% on the open, far more than the -5.3% drop of the underlying S&amp;P 500. As a result of this liquidity hiccup, or “flash crash” as it was called at the time, investors with outstanding market orders and stop-loss orders sold their shares in IVV for far less than their worth.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Bottom Line</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The broad diversification and implied liquidity offered by index ETFs gives many investors a false sense of security. When passively investing in an index, devoid of risk management, investors are still subject to varying degrees of valuation and liquidity risk, and they bear the full brunt of cyclical market risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Risk Management is Vital to any Strategy – <em>Ignore at your own peril!</em></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Many actively managed mutual funds and money managers take some steps to mitigate portfolio risk – at times to the detriment of bull market performance. Although passive indexing may appear to be easier and is also perceived to reduce risk, it ends up having the opposite effect during major downturns as it guarantees an investor will experience all of the losses in the corresponding market index. Remember, long-term performance is dependent not only on how much you make in the bull markets, but also how much you give back in the bear markets. Investments that are weighted toward the largest, most overvalued stocks and sectors are exactly the opposite of what might be used in a strategy that manages risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Index investing proponents generally downplay stock market cycles, but bear market survivability is a very real issue for many investors, particularly those in or nearing retirement. The decision to hold the course on an investment strategy usually depends on the severity of bear market losses and how long one’s portfolio remains underwater… in other words, how much time it takes to recover those losses.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To effectively demonstrate this concept, the Ulcer Index was developed in 1987 by Peter Martin to measure the depth and duration of drawdowns from earlier highs in one’s portfolio. It provides a graphic illustration of the level of stress and ulcers (hence the name) that can emerge from suffering deep, prolonged losses in one’s retirement savings.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Shown below are the comparative Ulcer Index graphs of the InvesTech Model Portfolio versus the Vanguard Total Stock Market Index (VTSMX), which is the largest and most popular fund on the market today.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":8329,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/IT-Portfolio-vs-Vanguard-Ulcer-Index.jpg\" alt=\"\" class=\"wp-image-8329\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The starts of the last two bear markets are noted in March 2000 and October 2007, as well as their subsequent market bottoms in October 2002 and March 2009. The green dashed lines illustrate the number of months required after the market bottom for one’s portfolio to recover the losses. Above all, the red shaded areas designate how long, and how deep one’s portfolio was underwater. These are the so-called “ulcer” zones when an investor must wait and wonder how long it will be before his portfolio is whole again.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As you’ll note, InvesTech’s “risk management” strategy dramatically reduced the stress of the last two generational bear markets by limiting the time spent in the “ulcer” zones. While the InvesTech Model Portfolio didn’t outperform the Vanguard Total Stock Market Index Fund in the bull markets, our ability to manage and reduce risk provided a long-term return which more than doubled that of the Vanguard index fund. More importantly, InvesTech subscribers lost significantly less and recovered much more quickly during bear markets, avoiding the urge to panic out of the market at the wrong time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is this combination of achieving safe returns and managing downside risk that matters most in the long-term performance of one’s portfolio… and in the survivability of bear markets.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:uagb/inline-notice {\"block_id\":\"04328f4a\",\"noticeContent\":\"\\u003cp\\u003ePast performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  \\u003ca href=\\u0022https://ns2020-investech.investech.com/terms-of-use/\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003eRead full Disclosures here\\u003c/a\\u003e\\u003ca href=\\u0022http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003e.\\u003c/a\\u003e\\u003c/p\\u003e\"} -->\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-04328f4a\"><h4 class=\"uagb-notice-title\">Important Disclosure Information</h4><div class=\"uagb-notice-text\"><p>Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  <a href=\"https://ns2020-investech.investech.com/terms-of-use/\" target=\"_blank\" rel=\"noreferrer noopener\">Read full Disclosures here</a><a href=\"http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\" target=\"_blank\" rel=\"noreferrer noopener\">.</a></p></div></div>\n<!-- /wp:uagb/inline-notice -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:paragraph -->\n<p>First published in our June 16, 2017 issue. Also available to read in PDF format: <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/IndexingFever.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF.</a></p>\n<!-- /wp:paragraph -->','Passive Investing: Inevitable Black Eye','Tempted by high-flying ETFs in this aging bull market? Just remember… Excitement is highest as the roller coaster goes over the top! In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public.','inherit','closed','closed','','2468-revision-v1','','','2021-06-11 15:18:27','2021-06-11 15:18:27','',2468,'https://ns2020-investech.investech.com/?p=8335',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8337,3,'2021-06-11 15:19:50','2021-06-11 15:19:50','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8270,\"mediaLink\":\"https://ns2020-investech.investech.com/rollercoaster-qac9q3pwhwg-unsplash/\",\"mediaType\":\"image\",\"mediaWidth\":38} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 38%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/rollercoaster-qac9Q3pWHWg-unsplash-1024x768.jpg\" alt=\"\" class=\"wp-image-8270 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>Tempted by high-flying ETFs in this aging bull market? </h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Just remember… Excitement is highest as the roller coaster goes over the top!</h2>\n<!-- /wp:heading --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public. As indicated by the headlines below, passive index investing has become all the rage, and Exchange Traded Funds (ETFs) are the tool of choice:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>ETFs could see $1 trillion in inflows over the coming year</strong></p><cite>MarketWatch, 1/31/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Small investors’ move to ‘passive’ stock funds becomes a stampede</strong> </p><cite>LA Times, 4/9/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Global ETF assets reach $4tn</strong> <em>The global exchange traded fund industry smashed past $4tn in assets last month…</em> </p><cite>Financial Times, 5/10/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:paragraph {\"placeholder\":\"Content…\"} -->\n<p>And our personal favorite...</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Wheee! A Quadruple-Leveraged S&amp;P 500 ETF is Here</strong></p><cite>Barron\'s, 5/3/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading {\"level\":3} -->\n<h3>Exchange Traded Fund (ETF)</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Exchange Traded Fund (ETF) was launched in 1993, and although they were slow to start, ETFs have proliferated over the last decade, both in number (see graph at right) and the variety of index funds available. There’s now an ETF for nearly every strategy, no matter how esoteric, and that has helped fuel the passive investing craze.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:image {\"align\":\"center\",\"id\":4829,\"sizeSlug\":\"full\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/number-of-etfs.png\" alt=\"Graph showing the number of ETFs (registered in the U.S.), Source: Investment Company Institute\" class=\"wp-image-4829\"/><figcaption>Number of ETFs (registered in the U.S.), Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p>Over the past 24 years, one can see the shift in interest from actively managed mutual funds toward passive investing. As shown in the graph below, net cash flows into actively managed funds were still four times larger than passive funds from 1993 through 2000. From 2001 through 2008, a change becomes evident as net cash flows for active funds turned negative while passive funds continued to grow. The disparity between the active and passive net cash flows during the current bull market (2009-2016) is remarkable, and it shows why there’s been a parabolic increase in the number of ETFs!</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4831,\"width\":713,\"height\":397} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Active-vs-Passive-Stock-Funds-Inflows.png\" alt=\"Graph showing net cash flows into actively managed funds between 1993 and 2016.\" class=\"wp-image-4831\" width=\"713\" height=\"397\"/><figcaption>Active vs. Passive Domestic Stock Funds; Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>So, why has passive investing become all the rage in recent years?</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:quote {\"align\":\"center\",\"className\":\"is-style-default\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center is-style-default\"><p>Excitement is Highest as the Roller Coaster Goes Over the Top.</p><cite>– Anonymous</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Many investors have been burned –not once, but twice– by the Tech Bubble of the 1990s and the Housing Bubble in 2007. Also, they are frustrated with the challenges of managing investments… a task that in this uncertain bull market has frequently seemed counterproductive.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The most popular index funds are touted as low-cost and broadly diversified, with a portfolio full of blue chip stocks. Moreover, ETFs offer “instant liquidity” with intraday trading compared to mutual funds that only settle at the end of each trading day. To the average investor, passive funds with minimal fees, implied safety, and lots of liquidity may appear to be the Holy Grail. As we’ll see, however, there is more to the story…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":4839,\"mediaType\":\"image\",\"mediaWidth\":43,\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 43%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Total-Assets-Domestic-Equity-Index-Funds.png\" alt=\"Graph showing the total assets in Domestic Equity Index Funds, 1990\'s to 2016\" class=\"wp-image-4839 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph -->\n<p>Just as the number of ETFs has grown, the past few years have witnessed an explosion in assets tied to passive investing that has extended to both mutual funds and ETFs (as shown in graph at right). A large part of the growth has been in ETFs, which are poised to overtake index mutual funds as the preferred indexing vehicle. Both types of products have doubled in assets just since 2012.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>It is important to recognize that passive investing is not a fresh new idea; in fact, the concept was introduced by John Bogle (the founder of Vanguard) in the 1970s. This strategy has shifted in and out of favor, becoming more popular as bull markets age and losing its luster only after the damage has been done by the next bear market. Just like riding a roller coaster, the peak in public enthusiasm often comes as the bull market is cresting the top.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>A Trip Back in Time…</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The rise in the popularity of index funds has been seen before.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote {\"align\":\"center\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center\"><p>It’s like deja vu all over again.</p><cite>- Yogi Berra</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The late 1990s: </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As the decade of the 1990s became the longest bull market in Wall Street history, the Tech Bubble wasn’t the only phenomenon catching investors’ attention. In 1998-99, headlines were touting the benefit of index investing as inflows reached record levels:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Saving for Retirement Index Fever</strong></p><cite> Fortune, 11/9/98</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Who Needs a Money Manager?</strong></p><cite>Business Week 2/22/99</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\"><!-- wp:paragraph -->\n<p>In <strong>March 1999</strong>, InvesTech Research published the issue shown at right, <a href=\"https://ns2020-investech.investech.com/subscriber-library/lemming-principle/\">comparing the emotional influx of index investors to lemmings</a>. However, instead of falling off a cliff, index investors fell into the largest bear market since the 1930s (the S&amp;P 500 Index lost -49.1%).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>2006-07:</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Fast-forward to 2006-07:</strong> Index investing was even <em>more</em> popular at the peak of the last bull market (also one of the longer bull markets of the past 80 years):</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:image {\"align\":\"center\",\"id\":4840,\"width\":195,\"height\":201,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/V99I04-216x300.png\" alt=\"InvesTech Research newsletter, &quot;The Lemming Principle,&quot; March 12, 1999\" class=\"wp-image-4840\" width=\"195\" height=\"201\"/><figcaption>InvesTech Research newsletter, \"The Lemming Principle,\" March 12, 1999</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index Funds: So Hot Right Now</strong></p><cite>The Motley Fool, 12/11/06</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index funds help you avoid risks of stock selection, market timing</strong></p><cite>Boston Globe, 2/27/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Owning the S&amp;P 500 is cheap, easy and smart</strong></p><cite>USA Today, 7/20/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:paragraph -->\n<p>In these previous periods, much like today, most investors perceived index funds – particularly the S&amp;P 500 Index funds – to be more diversified, safer investments.  We’ll discuss why index funds may not be all they’re thought to be…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Dark Side of Passive Investing – Live by the Index, Die by the Index</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As noted, history shows that index investing reaches the highest level of popularity in aging bull markets or near market peaks. The reason for this is that any type of “risk management” during a bull market tends to reduce or moderate a fund manager’s return. Consequently, it is not uncommon for a fully invested S&amp;P 500 Index fund to outperform most actively managed mutual funds and money managers when measured solely over the duration of a bull market.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are multiple reasons index or passive investing becomes more popular in an aging bull market. First, it is more comfortable. One doesn’t have the burden of making decisions about which stocks to invest in, or when to sell a stock if it rises or falls precipitously. Indexing also tends to remove the regret from bad decisions, because any loss can be attributed entirely to the market. Lastly, investing in an index fund is the cheapest and easiest way to take advantage of the market’s stellar gains which seem likely to continue. Yet before jumping into the indexing mania today, consider these inherent risks in passive investing…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>By definition, index funds also guarantee that you will suffer 100% of the next bear market’s decline. Regardless of which index you are matching, the index fund is required to stay fully invested regardless of market risk or volatility.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Assets flowing into the most popular index funds are funneling investments into the largest and most overvalued stocks in the market, driving them higher. The S&amp;P 500 is a capitalization weighted index, so money invested into these popular index funds is not evenly distributed in all 500 stocks. Rather, the largest companies by market cap receive a disproportionate amount of the investment. As a result, investors must take the good with the bad and favor the largest companies within the basket of 500 stocks, regardless of valuation and financial strength (or lack thereof).</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Market volatility increases when interest narrows to the index heavyweights. Only 50 stocks account for nearly 50% of S&amp;P 500 capitalization and one-half of an index fund’s portfolio. Additionally, the top 10 largest stocks comprise over 20% of the Index. As a result, downside risk in the next bear market could increase if selling pressure hits the largest stocks at the same time. The increased focus on index investing of late may very well increase both the size of, and speed at which the next bear market decline occurs.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":8324,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/iShares-Core-SP-500-ETF.jpg\" alt=\"\" class=\"wp-image-8324\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Intraday liquidity for ETFs can experience dramatic structural challenges in times of market distress. For example, during the market dislocation on August 24, 2015 the liquidity of most ETFs all but dried up just as the market opened. A confluence of problems –including circuit breakers, an obscure NYSE rule allowing market makers to delay posting prices, and a lack of futures data for large hedgers– all combined to take the bid out of the ETF space. Even large, well-established ETFs like the $116 billion iShares Core S&amp;P 500 ETF (IVV) saw unprecedented declines. As shown on the graph below, IVV fell -26% on the open, far more than the -5.3% drop of the underlying S&amp;P 500. As a result of this liquidity hiccup, or “flash crash” as it was called at the time, investors with outstanding market orders and stop-loss orders sold their shares in IVV for far less than their worth.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Bottom Line</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The broad diversification and implied liquidity offered by index ETFs gives many investors a false sense of security. When passively investing in an index, devoid of risk management, investors are still subject to varying degrees of valuation and liquidity risk, and they bear the full brunt of cyclical market risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Risk Management is Vital to any Strategy – <em>Ignore at your own peril!</em></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Many actively managed mutual funds and money managers take some steps to mitigate portfolio risk – at times to the detriment of bull market performance. Although passive indexing may appear to be easier and is also perceived to reduce risk, it ends up having the opposite effect during major downturns as it guarantees an investor will experience all of the losses in the corresponding market index. Remember, long-term performance is dependent not only on how much you make in the bull markets, but also how much you give back in the bear markets. Investments that are weighted toward the largest, most overvalued stocks and sectors are exactly the opposite of what might be used in a strategy that manages risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Index investing proponents generally downplay stock market cycles, but bear market survivability is a very real issue for many investors, particularly those in or nearing retirement. The decision to hold the course on an investment strategy usually depends on the severity of bear market losses and how long one’s portfolio remains underwater… in other words, how much time it takes to recover those losses.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To effectively demonstrate this concept, the Ulcer Index was developed in 1987 by Peter Martin to measure the depth and duration of drawdowns from earlier highs in one’s portfolio. It provides a graphic illustration of the level of stress and ulcers (hence the name) that can emerge from suffering deep, prolonged losses in one’s retirement savings.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Shown below are the comparative Ulcer Index graphs of the InvesTech Model Portfolio versus the Vanguard Total Stock Market Index (VTSMX), which is the largest and most popular fund on the market today.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":8329,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/IT-Portfolio-vs-Vanguard-Ulcer-Index.jpg\" alt=\"\" class=\"wp-image-8329\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The starts of the last two bear markets are noted in March 2000 and October 2007, as well as their subsequent market bottoms in October 2002 and March 2009. The green dashed lines illustrate the number of months required after the market bottom for one’s portfolio to recover the losses. Above all, the red shaded areas designate how long, and how deep one’s portfolio was underwater. These are the so-called “ulcer” zones when an investor must wait and wonder how long it will be before his portfolio is whole again.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As you’ll note, InvesTech’s “risk management” strategy dramatically reduced the stress of the last two generational bear markets by limiting the time spent in the “ulcer” zones. While the InvesTech Model Portfolio didn’t outperform the Vanguard Total Stock Market Index Fund in the bull markets, our ability to manage and reduce risk provided a long-term return which more than doubled that of the Vanguard index fund. More importantly, InvesTech subscribers lost significantly less and recovered much more quickly during bear markets, avoiding the urge to panic out of the market at the wrong time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is this combination of achieving safe returns and managing downside risk that matters most in the long-term performance of one’s portfolio… and in the survivability of bear markets.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:uagb/inline-notice {\"block_id\":\"04328f4a\",\"noticeContent\":\"\\u003cp\\u003ePast performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  \\u003ca href=\\u0022https://ns2020-investech.investech.com/terms-of-use/\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003eRead full Disclosures here\\u003c/a\\u003e\\u003ca href=\\u0022http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003e.\\u003c/a\\u003e\\u003c/p\\u003e\"} -->\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-04328f4a\"><h4 class=\"uagb-notice-title\">Important Disclosure Information</h4><div class=\"uagb-notice-text\"><p>Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  <a href=\"https://ns2020-investech.investech.com/terms-of-use/\" target=\"_blank\" rel=\"noreferrer noopener\">Read full Disclosures here</a><a href=\"http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\" target=\"_blank\" rel=\"noreferrer noopener\">.</a></p></div></div>\n<!-- /wp:uagb/inline-notice -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:paragraph -->\n<p>First published in our June 16, 2017 issue. Also available to read in PDF format: <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/IndexingFever.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF.</a></p>\n<!-- /wp:paragraph -->','Passive Investing: Inevitable Black Eye','Tempted by high-flying ETFs in this aging bull market? Just remember… Excitement is highest as the roller coaster goes over the top! In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public.','inherit','closed','closed','','2468-revision-v1','','','2021-06-11 15:19:50','2021-06-11 15:19:50','',2468,'https://ns2020-investech.investech.com/?p=8337',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8339,3,'2021-06-11 15:20:41','2021-06-11 15:20:41','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8270,\"mediaLink\":\"https://ns2020-investech.investech.com/rollercoaster-qac9q3pwhwg-unsplash/\",\"mediaType\":\"image\",\"mediaWidth\":38} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 38%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/rollercoaster-qac9Q3pWHWg-unsplash-1024x768.jpg\" alt=\"\" class=\"wp-image-8270 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>Tempted by high-flying ETFs in this aging bull market? </h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Just remember… Excitement is highest as the roller coaster goes over the top!</h2>\n<!-- /wp:heading --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public. As indicated by the headlines below, passive index investing has become all the rage, and Exchange Traded Funds (ETFs) are the tool of choice:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>ETFs could see $1 trillion in inflows over the coming year</strong></p><cite>MarketWatch, 1/31/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Small investors’ move to ‘passive’ stock funds becomes a stampede</strong> </p><cite>LA Times, 4/9/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Global ETF assets reach $4tn</strong> <em>The global exchange traded fund industry smashed past $4tn in assets last month…</em> </p><cite>Financial Times, 5/10/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:paragraph {\"placeholder\":\"Content…\"} -->\n<p>And our personal favorite...</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Wheee! A Quadruple-Leveraged S&amp;P 500 ETF is Here</strong></p><cite>Barron\'s, 5/3/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading {\"level\":3} -->\n<h3>Exchange Traded Fund (ETF)</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Exchange Traded Fund (ETF) was launched in 1993, and although they were slow to start, ETFs have proliferated over the last decade, both in number (see graph at right) and the variety of index funds available. There’s now an ETF for nearly every strategy, no matter how esoteric, and that has helped fuel the passive investing craze.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:image {\"align\":\"center\",\"id\":4829,\"sizeSlug\":\"full\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/number-of-etfs.png\" alt=\"Graph showing the number of ETFs (registered in the U.S.), Source: Investment Company Institute\" class=\"wp-image-4829\"/><figcaption>Number of ETFs (registered in the U.S.), Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p>Over the past 24 years, one can see the shift in interest from actively managed mutual funds toward passive investing. As shown in the graph below, net cash flows into actively managed funds were still four times larger than passive funds from 1993 through 2000. From 2001 through 2008, a change becomes evident as net cash flows for active funds turned negative while passive funds continued to grow. The disparity between the active and passive net cash flows during the current bull market (2009-2016) is remarkable, and it shows why there’s been a parabolic increase in the number of ETFs!</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4831,\"width\":713,\"height\":397} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Active-vs-Passive-Stock-Funds-Inflows.png\" alt=\"Graph showing net cash flows into actively managed funds between 1993 and 2016.\" class=\"wp-image-4831\" width=\"713\" height=\"397\"/><figcaption>Active vs. Passive Domestic Stock Funds; Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>So, why has passive investing become all the rage in recent years?</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:quote {\"align\":\"center\",\"className\":\"is-style-default\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center is-style-default\"><p>Excitement is Highest as the Roller Coaster Goes Over the Top.</p><cite>– Anonymous</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Many investors have been burned –not once, but twice– by the Tech Bubble of the 1990s and the Housing Bubble in 2007. Also, they are frustrated with the challenges of managing investments… a task that in this uncertain bull market has frequently seemed counterproductive.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The most popular index funds are touted as low-cost and broadly diversified, with a portfolio full of blue chip stocks. Moreover, ETFs offer “instant liquidity” with intraday trading compared to mutual funds that only settle at the end of each trading day. To the average investor, passive funds with minimal fees, implied safety, and lots of liquidity may appear to be the Holy Grail. As we’ll see, however, there is more to the story…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":4839,\"mediaType\":\"image\",\"mediaWidth\":43,\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 43%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Total-Assets-Domestic-Equity-Index-Funds.png\" alt=\"Graph showing the total assets in Domestic Equity Index Funds, 1990\'s to 2016\" class=\"wp-image-4839 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph -->\n<p>Just as the number of ETFs has grown, the past few years have witnessed an explosion in assets tied to passive investing that has extended to both mutual funds and ETFs (as shown in graph at right). A large part of the growth has been in ETFs, which are poised to overtake index mutual funds as the preferred indexing vehicle. Both types of products have doubled in assets just since 2012.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>It is important to recognize that passive investing is not a fresh new idea; in fact, the concept was introduced by John Bogle (the founder of Vanguard) in the 1970s. This strategy has shifted in and out of favor, becoming more popular as bull markets age and losing its luster only after the damage has been done by the next bear market. Just like riding a roller coaster, the peak in public enthusiasm often comes as the bull market is cresting the top.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>A Trip Back in Time…</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The rise in the popularity of index funds has been seen before.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote {\"align\":\"center\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center\"><p>It’s like deja vu all over again.</p><cite>- Yogi Berra</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The late 1990s: </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As the decade of the 1990s became the longest bull market in Wall Street history, the Tech Bubble wasn’t the only phenomenon catching investors’ attention. In 1998-99, headlines were touting the benefit of index investing as inflows reached record levels:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Saving for Retirement Index Fever</strong></p><cite> Fortune, 11/9/98</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Who Needs a Money Manager?</strong></p><cite>Business Week 2/22/99</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\"><!-- wp:paragraph -->\n<p>In <strong>March 1999</strong>, InvesTech Research published the issue shown at right, <a href=\"https://ns2020-investech.investech.com/subscriber-library/lemming-principle/\">comparing the emotional influx of index investors to lemmings</a>. However, instead of falling off a cliff, index investors fell into the largest bear market since the 1930s (the S&amp;P 500 Index lost -49.1%).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>2006-07:</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Fast-forward to 2006-07:</strong> Index investing was even <em>more</em> popular at the peak of the last bull market (also one of the longer bull markets of the past 80 years):</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:image {\"align\":\"center\",\"id\":4840,\"width\":195,\"height\":201,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/V99I04-216x300.png\" alt=\"InvesTech Research newsletter, &quot;The Lemming Principle,&quot; March 12, 1999\" class=\"wp-image-4840\" width=\"195\" height=\"201\"/><figcaption>InvesTech Research newsletter, \"The Lemming Principle,\" March 12, 1999</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index Funds: So Hot Right Now</strong></p><cite>The Motley Fool, 12/11/06</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index funds help you avoid risks of stock selection, market timing</strong></p><cite>Boston Globe, 2/27/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Owning the S&amp;P 500 is cheap, easy and smart</strong></p><cite>USA Today, 7/20/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:paragraph -->\n<p>In these previous periods, much like today, most investors perceived index funds – particularly the S&amp;P 500 Index funds – to be more diversified, safer investments.  We’ll discuss why index funds may not be all they’re thought to be…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Dark Side of Passive Investing – Live by the Index, Die by the Index</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As noted, history shows that index investing reaches the highest level of popularity in aging bull markets or near market peaks. The reason for this is that any type of “risk management” during a bull market tends to reduce or moderate a fund manager’s return. Consequently, it is not uncommon for a fully invested S&amp;P 500 Index fund to outperform most actively managed mutual funds and money managers when measured <em>solely </em>over the duration of a bull market.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are multiple reasons index or passive investing becomes more popular in an aging bull market. First, it is more comfortable. One doesn’t have the burden of making decisions about which stocks to invest in, or when to sell a stock if it rises or falls precipitously. Indexing also tends to remove the regret from bad decisions, because any loss can be attributed entirely to the market. Lastly, investing in an index fund is the cheapest and easiest way to take advantage of the market’s stellar gains which seem likely to continue. Yet before jumping into the indexing mania today, consider these inherent risks in passive investing…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>By definition, index funds also guarantee that you will suffer 100% of the next bear market’s decline.</strong> Regardless of which index you are matching, the index fund is required to stay fully invested regardless of market risk or volatility.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Assets flowing into the most popular index funds are funneling investments into the largest and most overvalued stocks in the market, driving them higher. </strong>The S&amp;P 500 is a capitalization weighted index, so money invested into these popular index funds is not evenly distributed in all 500 stocks. Rather, the largest companies by market cap receive a disproportionate amount of the investment. As a result, investors must take the good with the bad and favor the largest companies within the basket of 500 stocks, regardless of valuation and financial strength (or lack thereof).</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Market volatility increases when interest narrows to the index heavyweights. </strong>Only 50 stocks account for nearly 50% of S&amp;P 500 capitalization and one-half of an index fund’s portfolio. Additionally, the top 10 largest stocks comprise over 20% of the Index. As a result, downside risk in the next bear market could increase if selling pressure hits the largest stocks at the same time. The increased focus on index investing of late may very well increase both the size of, and speed at which the next bear market decline occurs.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":8324,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/iShares-Core-SP-500-ETF.jpg\" alt=\"\" class=\"wp-image-8324\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Intraday liquidity for ETFs can experience dramatic structural challenges in times of market distress. </strong>For example, during the market dislocation on August 24, 2015 the liquidity of most ETFs all but dried up just as the market opened. A confluence of problems –including circuit breakers, an obscure NYSE rule allowing market makers to delay posting prices, and a lack of futures data for large hedgers– all combined to take the bid out of the ETF space. Even large, well-established ETFs like the $116 billion iShares Core S&amp;P 500 ETF (IVV) saw unprecedented declines. As shown on the graph below, IVV fell -26% on the open, far more than the -5.3% drop of the underlying S&amp;P 500. As a result of this liquidity hiccup, or “flash crash” as it was called at the time, investors with outstanding market orders and stop-loss orders sold their shares in IVV for far less than their worth.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Bottom Line</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The broad diversification and implied liquidity offered by index ETFs gives many investors a false sense of security. When passively investing in an index, devoid of risk management, investors are still subject to varying degrees of valuation and liquidity risk, and they bear the full brunt of cyclical market risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Risk Management is Vital to any Strategy – <em>Ignore at your own peril!</em></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Many actively managed mutual funds and money managers take some steps to mitigate portfolio risk – at times to the detriment of bull market performance. Although passive indexing may appear to be easier and is also perceived to reduce risk, it ends up having the opposite effect during major downturns as it guarantees an investor will experience all of the losses in the corresponding market index. Remember, long-term performance is dependent not only on how much you make in the bull markets, but also how much you give back in the bear markets. Investments that are weighted toward the largest, most overvalued stocks and sectors are exactly the opposite of what might be used in a strategy that manages risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Index investing proponents generally downplay stock market cycles, but bear market survivability is a very real issue for many investors, particularly those in or nearing retirement. The decision to hold the course on an investment strategy usually depends on the severity of bear market losses and how long one’s portfolio remains underwater… in other words, how much time it takes to recover those losses.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To effectively demonstrate this concept, the Ulcer Index was developed in 1987 by Peter Martin to measure the depth and duration of drawdowns from earlier highs in one’s portfolio. It provides a graphic illustration of the level of stress and ulcers (hence the name) that can emerge from suffering deep, prolonged losses in one’s retirement savings.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Shown below are the comparative Ulcer Index graphs of the InvesTech Model Portfolio versus the Vanguard Total Stock Market Index (VTSMX), which is the largest and most popular fund on the market today.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":8329,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/IT-Portfolio-vs-Vanguard-Ulcer-Index.jpg\" alt=\"\" class=\"wp-image-8329\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The starts of the last two bear markets are noted in March 2000 and October 2007, as well as their subsequent market bottoms in October 2002 and March 2009. The green dashed lines illustrate the number of months required after the market bottom for one’s portfolio to recover the losses. Above all, the red shaded areas designate how long, and how deep one’s portfolio was underwater. These are the so-called “ulcer” zones when an investor must wait and wonder how long it will be before his portfolio is whole again.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As you’ll note, InvesTech’s “risk management” strategy dramatically reduced the stress of the last two generational bear markets by limiting the time spent in the “ulcer” zones. While the InvesTech Model Portfolio didn’t outperform the Vanguard Total Stock Market Index Fund in the bull markets, our ability to manage and reduce risk provided a long-term return which more than doubled that of the Vanguard index fund. More importantly, InvesTech subscribers lost significantly less and recovered much more quickly during bear markets, avoiding the urge to panic out of the market at the wrong time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is this combination of achieving safe returns and managing downside risk that matters most in the long-term performance of one’s portfolio… and in the survivability of bear markets.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:uagb/inline-notice {\"block_id\":\"04328f4a\",\"noticeContent\":\"\\u003cp\\u003ePast performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  \\u003ca href=\\u0022https://ns2020-investech.investech.com/terms-of-use/\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003eRead full Disclosures here\\u003c/a\\u003e\\u003ca href=\\u0022http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003e.\\u003c/a\\u003e\\u003c/p\\u003e\"} -->\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-04328f4a\"><h4 class=\"uagb-notice-title\">Important Disclosure Information</h4><div class=\"uagb-notice-text\"><p>Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  <a href=\"https://ns2020-investech.investech.com/terms-of-use/\" target=\"_blank\" rel=\"noreferrer noopener\">Read full Disclosures here</a><a href=\"http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\" target=\"_blank\" rel=\"noreferrer noopener\">.</a></p></div></div>\n<!-- /wp:uagb/inline-notice -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:paragraph -->\n<p>First published in our June 16, 2017 issue. Also available to read in PDF format: <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/IndexingFever.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF.</a></p>\n<!-- /wp:paragraph -->','Passive Investing: Inevitable Black Eye','Tempted by high-flying ETFs in this aging bull market? Just remember… Excitement is highest as the roller coaster goes over the top! In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public.','inherit','closed','closed','','2468-revision-v1','','','2021-06-11 15:20:41','2021-06-11 15:20:41','',2468,'https://ns2020-investech.investech.com/?p=8339',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8340,3,'2021-06-11 15:21:33','2021-06-11 15:21:33','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8270,\"mediaLink\":\"https://ns2020-investech.investech.com/rollercoaster-qac9q3pwhwg-unsplash/\",\"mediaType\":\"image\",\"mediaWidth\":38} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 38%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/rollercoaster-qac9Q3pWHWg-unsplash-1024x768.jpg\" alt=\"\" class=\"wp-image-8270 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>Tempted by high-flying ETFs in this aging bull market? </h2>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Just remember… Excitement is highest as the roller coaster goes over the top!</h2>\n<!-- /wp:heading --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public. As indicated by the headlines below, passive index investing has become all the rage, and Exchange Traded Funds (ETFs) are the tool of choice:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>ETFs could see $1 trillion in inflows over the coming year</strong></p><cite>MarketWatch, 1/31/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Small investors’ move to ‘passive’ stock funds becomes a stampede</strong> </p><cite>LA Times, 4/9/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Global ETF assets reach $4tn</strong> <em>The global exchange traded fund industry smashed past $4tn in assets last month…</em> </p><cite>Financial Times, 5/10/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:paragraph {\"placeholder\":\"Content…\"} -->\n<p>And our personal favorite...</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Wheee! A Quadruple-Leveraged S&amp;P 500 ETF is Here</strong></p><cite>Barron\'s, 5/3/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading {\"level\":3} -->\n<h3>Exchange Traded Fund (ETF)</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The first Exchange Traded Fund (ETF) was launched in 1993, and although they were slow to start, ETFs have proliferated over the last decade, both in number (see graph at right) and the variety of index funds available. There’s now an ETF for nearly every strategy, no matter how esoteric, and that has helped fuel the passive investing craze.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:image {\"align\":\"center\",\"id\":4829,\"sizeSlug\":\"full\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/number-of-etfs.png\" alt=\"Graph showing the number of ETFs (registered in the U.S.), Source: Investment Company Institute\" class=\"wp-image-4829\"/><figcaption>Number of ETFs (registered in the U.S.), Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p>Over the past 24 years, one can see the shift in interest from actively managed mutual funds toward passive investing. As shown in the graph below, net cash flows into actively managed funds were still four times larger than passive funds from 1993 through 2000. From 2001 through 2008, a change becomes evident as net cash flows for active funds turned negative while passive funds continued to grow. The disparity between the active and passive net cash flows during the current bull market (2009-2016) is remarkable, and it shows why there’s been a parabolic increase in the number of ETFs!</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4831,\"width\":713,\"height\":397} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Active-vs-Passive-Stock-Funds-Inflows.png\" alt=\"Graph showing net cash flows into actively managed funds between 1993 and 2016.\" class=\"wp-image-4831\" width=\"713\" height=\"397\"/><figcaption>Active vs. Passive Domestic Stock Funds; Source: Investment Company Institute</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>So, why has passive investing become all the rage in recent years?</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:quote {\"align\":\"center\",\"className\":\"is-style-default\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center is-style-default\"><p>Excitement is Highest as the Roller Coaster Goes Over the Top.</p><cite>– Anonymous</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>Many investors have been burned –not once, but twice– by the Tech Bubble of the 1990s and the Housing Bubble in 2007. Also, they are frustrated with the challenges of managing investments… a task that in this uncertain bull market has frequently seemed counterproductive.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The most popular index funds are touted as low-cost and broadly diversified, with a portfolio full of blue chip stocks. Moreover, ETFs offer “instant liquidity” with intraday trading compared to mutual funds that only settle at the end of each trading day. To the average investor, passive funds with minimal fees, implied safety, and lots of liquidity may appear to be the Holy Grail. As we’ll see, however, there is more to the story…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":4839,\"mediaType\":\"image\",\"mediaWidth\":43,\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile is-vertically-aligned-center\" style=\"grid-template-columns:auto 43%\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Total-Assets-Domestic-Equity-Index-Funds.png\" alt=\"Graph showing the total assets in Domestic Equity Index Funds, 1990\'s to 2016\" class=\"wp-image-4839 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph -->\n<p>Just as the number of ETFs has grown, the past few years have witnessed an explosion in assets tied to passive investing that has extended to both mutual funds and ETFs (as shown in graph at right). A large part of the growth has been in ETFs, which are poised to overtake index mutual funds as the preferred indexing vehicle. Both types of products have doubled in assets just since 2012.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:paragraph -->\n<p>It is important to recognize that passive investing is not a fresh new idea; in fact, the concept was introduced by John Bogle (the founder of Vanguard) in the 1970s. This strategy has shifted in and out of favor, becoming more popular as bull markets age and losing its luster only after the damage has been done by the next bear market. Just like riding a roller coaster, the peak in public enthusiasm often comes as the bull market is cresting the top.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>A Trip Back in Time…</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The rise in the popularity of index funds has been seen before.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:quote {\"align\":\"center\"} -->\n<blockquote class=\"wp-block-quote has-text-align-center\"><p>It’s like deja vu all over again.</p><cite>- Yogi Berra</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>The late 1990s: </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As the decade of the 1990s became the longest bull market in Wall Street history, the Tech Bubble wasn’t the only phenomenon catching investors’ attention. In 1998-99, headlines were touting the benefit of index investing as inflows reached record levels:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Saving for Retirement Index Fever</strong></p><cite> Fortune, 11/9/98</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Who Needs a Money Manager?</strong></p><cite>Business Week 2/22/99</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\"><!-- wp:paragraph -->\n<p>In <strong>March 1999</strong>, InvesTech Research published the issue shown at right, <a href=\"https://ns2020-investech.investech.com/subscriber-library/lemming-principle/\">comparing the emotional influx of index investors to lemmings</a>. However, instead of falling off a cliff, index investors fell into the largest bear market since the 1930s (the S&amp;P 500 Index lost -49.1%).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>2006-07:</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Fast-forward to 2006-07:</strong> Index investing was even <em>more</em> popular at the peak of the last bull market (also one of the longer bull markets of the past 80 years):</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:image {\"align\":\"center\",\"id\":4840,\"width\":195,\"height\":201,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-medium is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/V99I04-216x300.png\" alt=\"InvesTech Research newsletter, &quot;The Lemming Principle,&quot; March 12, 1999\" class=\"wp-image-4840\" width=\"195\" height=\"201\"/><figcaption>InvesTech Research newsletter, \"The Lemming Principle,\" March 12, 1999</figcaption></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index Funds: So Hot Right Now</strong></p><cite>The Motley Fool, 12/11/06</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Index funds help you avoid risks of stock selection, market timing</strong></p><cite>Boston Globe, 2/27/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Owning the S&amp;P 500 is cheap, easy and smart</strong></p><cite>USA Today, 7/20/07</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:paragraph -->\n<p>In these previous periods, much like today, most investors perceived index funds – particularly the S&amp;P 500 Index funds – to be more diversified, safer investments.  We’ll discuss why index funds may not be all they’re thought to be…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>The Dark Side of Passive Investing – Live by the Index, Die by the Index</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As noted, history shows that index investing reaches the highest level of popularity in aging bull markets or near market peaks. The reason for this is that any type of “risk management” during a bull market tends to reduce or moderate a fund manager’s return. Consequently, it is not uncommon for a fully invested S&amp;P 500 Index fund to outperform most actively managed mutual funds and money managers when measured <em>solely </em>over the duration of a bull market.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>There are multiple reasons index or passive investing becomes more popular in an aging bull market. First, it is more comfortable. One doesn’t have the burden of making decisions about which stocks to invest in, or when to sell a stock if it rises or falls precipitously. Indexing also tends to remove the regret from bad decisions, because any loss can be attributed entirely to the market. Lastly, investing in an index fund is the cheapest and easiest way to take advantage of the market’s stellar gains which seem likely to continue. Yet before jumping into the indexing mania today, consider these inherent risks in passive investing…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>By definition, index funds also guarantee that you will suffer 100% of the next bear market’s decline.</strong> Regardless of which index you are matching, the index fund is required to stay fully invested regardless of market risk or volatility.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Assets flowing into the most popular index funds are funneling investments into the largest and most overvalued stocks in the market, driving them higher. </strong>The S&amp;P 500 is a capitalization weighted index, so money invested into these popular index funds is not evenly distributed in all 500 stocks. Rather, the largest companies by market cap receive a disproportionate amount of the investment. As a result, investors must take the good with the bad and favor the largest companies within the basket of 500 stocks, regardless of valuation and financial strength (or lack thereof).</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Market volatility increases when interest narrows to the index heavyweights. </strong>Only 50 stocks account for nearly 50% of S&amp;P 500 capitalization and one-half of an index fund’s portfolio. Additionally, the top 10 largest stocks comprise over 20% of the Index. As a result, downside risk in the next bear market could increase if selling pressure hits the largest stocks at the same time. The increased focus on index investing of late may very well increase both the size of, and speed at which the next bear market decline occurs.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":8324,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/iShares-Core-SP-500-ETF.jpg\" alt=\"\" class=\"wp-image-8324\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Intraday liquidity for ETFs can experience dramatic structural challenges in times of market distress. </strong>For example, during the market dislocation on August 24, 2015 the liquidity of most ETFs all but dried up just as the market opened. A confluence of problems –including circuit breakers, an obscure NYSE rule allowing market makers to delay posting prices, and a lack of futures data for large hedgers– all combined to take the bid out of the ETF space. Even large, well-established ETFs like the $116 billion iShares Core S&amp;P 500 ETF (IVV) saw unprecedented declines. As shown on the graph below, IVV fell -26% on the open, far more than the -5.3% drop of the underlying S&amp;P 500. As a result of this liquidity hiccup, or “flash crash” as it was called at the time, investors with outstanding market orders and stop-loss orders sold their shares in IVV for far less than their worth.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Bottom Line</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The broad diversification and implied liquidity offered by index ETFs gives many investors a false sense of security. When passively investing in an index, devoid of risk management, investors are still subject to varying degrees of valuation and liquidity risk, and they bear the full brunt of cyclical market risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Risk Management is Vital to any Strategy – <em>Ignore at your own peril!</em></h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Many actively managed mutual funds and money managers take some steps to mitigate portfolio risk – at times to the detriment of bull market performance. Although passive indexing may appear to be easier and is also perceived to reduce risk, it ends up having the opposite effect during major downturns as it guarantees an investor will experience all of the losses in the corresponding market index. Remember, long-term performance is dependent not only on how much you make in the bull markets, but also how much you give back in the bear markets. Investments that are weighted toward the largest, most overvalued stocks and sectors are exactly the opposite of what might be used in a strategy that manages risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Index investing proponents generally downplay stock market cycles, but bear market survivability is a very real issue for many investors, particularly those in or nearing retirement. The decision to hold the course on an investment strategy usually depends on the severity of bear market losses and how long one’s portfolio remains underwater… in other words, how much time it takes to recover those losses.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>To effectively demonstrate this concept, the <strong>Ulcer Index </strong>was developed in 1987 by Peter Martin to measure the depth and duration of drawdowns from earlier highs in one’s portfolio. It provides a graphic illustration of the level of stress and ulcers (hence the name) that can emerge from suffering deep, prolonged losses in one’s retirement savings.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Shown below are the comparative Ulcer Index graphs of the InvesTech Model Portfolio versus the Vanguard Total Stock Market Index (VTSMX), which is the largest and most popular fund on the market today.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":8329,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/IT-Portfolio-vs-Vanguard-Ulcer-Index.jpg\" alt=\"\" class=\"wp-image-8329\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The starts of the last two bear markets are noted in March 2000 and October 2007, as well as their subsequent market bottoms in October 2002 and March 2009. The green dashed lines illustrate the number of months required after the market bottom for one’s portfolio to recover the losses. Above all, the red shaded areas designate how long, and how deep one’s portfolio was underwater. These are the so-called “ulcer” zones when an investor must wait and wonder how long it will be before his portfolio is whole again.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As you’ll note, InvesTech’s “risk management” strategy dramatically reduced the stress of the last two generational bear markets by limiting the time spent in the “ulcer” zones. While the InvesTech Model Portfolio didn’t outperform the Vanguard Total Stock Market Index Fund in the bull markets, our ability to manage and reduce risk provided a long-term return which more than doubled that of the Vanguard index fund. More importantly, InvesTech subscribers lost significantly less and recovered much more quickly during bear markets, avoiding the urge to panic out of the market at the wrong time.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>It is this combination of achieving safe returns and managing downside risk that matters most in the long-term performance of one’s portfolio… and in the survivability of bear markets.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:uagb/inline-notice {\"block_id\":\"04328f4a\",\"noticeContent\":\"\\u003cp\\u003ePast performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  \\u003ca href=\\u0022https://ns2020-investech.investech.com/terms-of-use/\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003eRead full Disclosures here\\u003c/a\\u003e\\u003ca href=\\u0022http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\\u0022 target=\\u0022_blank\\u0022 rel=\\u0022noreferrer noopener\\u0022\\u003e.\\u003c/a\\u003e\\u003c/p\\u003e\"} -->\n<div class=\"wp-block-uagb-inline-notice uagb-inline_notice__outer-wrap uagb-inline_notice__align-left uagb-block-04328f4a\"><h4 class=\"uagb-notice-title\">Important Disclosure Information</h4><div class=\"uagb-notice-text\"><p>Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.  <a href=\"https://ns2020-investech.investech.com/terms-of-use/\" target=\"_blank\" rel=\"noreferrer noopener\">Read full Disclosures here</a><a href=\"http://Past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk.  Therefore, it should not be assumed that future performance of any specific investment or investment strategy (including the investments and/or investment strategies recommended by InvesTech Research) will be profitable, equal any historical performance level(s), be suitable for your portfolio or individual situation, or prove successful.\" target=\"_blank\" rel=\"noreferrer noopener\">.</a></p></div></div>\n<!-- /wp:uagb/inline-notice -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:spacer {\"height\":33} -->\n<div style=\"height:33px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:paragraph -->\n<p>First published in our June 16, 2017 issue. Also available to read in PDF format: <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/IndexingFever.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF.</a></p>\n<!-- /wp:paragraph -->','Passive Investing: Inevitable Black Eye','Tempted by high-flying ETFs in this aging bull market? Just remember… Excitement is highest as the roller coaster goes over the top! In today’s technologically advanced world, featuring self-driving cars, pilotless airplanes, and smart homes, a “hands-off” trend is also gaining popularity among the investing public.','inherit','closed','closed','','2468-revision-v1','','','2021-06-11 15:21:33','2021-06-11 15:21:33','',2468,'https://ns2020-investech.investech.com/?p=8340',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8342,3,'2021-06-11 21:10:17','2021-06-11 21:10:17','<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p><strong> The ABCs of MLPs…<br>What you don’t know can hurt you.</strong></p></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:paragraph -->\n<p>In this era of ultra-low interest rates, investors are inevitably drawn to investments with attractive yields, and Master Limited Partnerships (MLPs) are among the most popular income-generating investments on the market today. These appear to be safe and secure places to invest as MLPs derive their income from revenue generating properties and infrastructure, but there’s more to the story.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>What are Master Limited Partnerships (MLPs)?</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>As the name states, MLPs are limited partnerships which trade on major exchanges like common stock. They consist of a general partner (a sponsoring company in the same industry, which retains control of the business) and limited partners. When investors buy shares or units of the MLP, they become a limited partner in the business.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As partnerships, MLPs are eligible for special tax treatment and avoid “double taxation.” With common stock, dividends are essentially taxed twice – once at the corporate level before dividends are paid and again at the shareholder level, after the dividend is received. Partnerships –including MLPs– are treated as “pass-through” entities where the income and deductions are passed directly to the partners (investors) who pay the taxes. Thus, MLPs are taxed only once at the investor level.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":5300,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-medium\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/AlerianYield-300x166.png\" alt=\"Alerian MLP Index yield\" class=\"wp-image-5300\"/><figcaption>Yield on Alerian MLP Index</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Due to this favorable tax treatment, the level of distribution or yield for MLPs is generally high and can be very attractive to potential investors. One of the primary benchmarks used to track these publicly traded partnerships is the Alerian MLP Index, which includes 50 of the most prominent MLPs. The yield for this Index over the past 20 years is shown in the graph below. Note that the yield has generally been in the 6-8% range, and has occasionally jumped to over 10%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>With yields like this, it’s no surprise that many investors consider MLPs to be a great source of potential income. But they aren’t as safe as commonly perceived, and there are important facts to consider before making an investment decision…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Fact #1: Sector diversification options are limited.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Today, the majority of MLPs are in the energy sector and most are engaged in energy-related transportation, processing, and storage. This makes sector diversification problematic. Current tax regulations require that a publicly traded partnership must receive 90% of its income from specified sources, most of which pertain to natural resources. Thus, there are only a few MLP options outside of energy, and those are mostly in real estate and finance.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Fact #2: Yields can be high, but distributions are not guaranteed.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Most MLPs manage to maintain distributions even in a weak economy. However, they need to have profits to make payouts. In recent downturns, it’s become apparent that distributions can decline or even disappear altogether. Several 2007 members of the Alerian MLP Index were forced to cut distributions significantly in the last recession (and it’s interesting to note that they have since been dropped from the Index).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Atlas Pipeline Partners LP (symbol: APL) is a prime example of the risk in MLP investing. Over the course of the last recession, the price of APL shares dropped more than 90% and distributions ceased. No distributions were made from May 2009 to November 2010.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Fact #3: MLPs mean more work at tax time.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>When you invest in an MLP, you become a limited partner, so the tax picture is more complicated than when you simply own common stock. With stocks, investors pay taxes on dividends received. With MLPs, much of the tax on distribution income is deferred until you sell your shares. Briefly, this is how taxes work with an MLP…</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>At year-end you receive a “K1” report from the partnership showing your portion of partnership income minus deductions for depreciation, depletion, etc. Due to these offsetting deductions, the net taxable income for the year is usually much less than the distributions paid out. The difference between the distribution and taxable income is treated as “return of capital” and reduces your cost basis. When you sell the shares, you will be required to pay income taxes on the “return of capital” portion, along with any capital gains above your initial investment. Bottom line, MLP investing requires extra work and forms at tax time, and it can lead to delays in filing as you wait for K1s to be issued.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Fact #4: MLPs are generally not suitable investments for IRAs or pension plans.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>There are no restrictions on buying MLPs in qualified retirement plans, but they may not be a good investment option. One benefit of owning an MLP is that most taxes are deferred until sale, and that benefit is wasted in a tax deferred IRA. Also, although your retirement plan is tax exempt, it could end up owing taxes on MLP income. The reason is that any tax-exempt entity (like an IRA) that earns income from an outside business is subject to the “Unrelated Business Income Tax” (UBIT) after the first $1,000 of net income. As a partner in an MLP, your retirement plan could be considered to earn this sort of income.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Fact #5: MLPs carry unknown risks.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>It’s important to remember that these investments are not like bonds or preferred stocks which have a set par value. The price of MLP shares fluctuates like common stock. MLPs tend to be especially vulnerable to rising interest rates as they face increased competition from other income investments such as bonds or CDs. Higher interest rates also increase the cost of capital used for maintenance or expansion of MLP assets. In addition, economic swings can have a negative impact since most MLPs derive income from oil and gas properties, and utilization of these assets typically declines in a recession.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":5301,\"sizeSlug\":\"medium\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-medium\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/AlerianMLP-300x202.png\" alt=\"Alerian price index took three years to surpass its peak in the bear market\" class=\"wp-image-5301\"/><figcaption>Alerian MLP Price Index</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>This variability in MLP performance is evident in the Alerian MLP Price Index shown at right. Although this Index has generally moved higher over the past 20 years, it hit a major peak in 2007 and again in 2014. Over the course of the last bear market, this MLP Index dropped more than 55% and it took over three years to surpass the 2007 peak.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The trajectory in this Index is also particularly worrisome. As investors have flocked to these popular investments, this Index has soared and valuations have climbed. Even with the sell-off in energy stocks, the average P/E ratio of the Alerian Index constituents is now 30x compared to an average P/E of 20.7x for the S&amp;P 500.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3><strong>Also, although MLPs currently enjoy tax favored status, be aware that tax rules can change at the stroke of a legislative pen.</strong> </h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>This has happened before. In the early 1980s, the first MLPs were a far more diverse group than they are today. Under the tax laws at the time, firms in a variety of energy and consumer industries were able to take advantage of this tax favored status including restaurants, hotels and cable TV. Even the Boston Celtics traded as an MLP at one time. In 1987 the tax code tightened, and under the new rules many of these partnerships no longer qualified for the tax advantages.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Also, in a more recent example, Canada’s 2006 Tax Fairness Plan implemented a new tax eventually amounting to more than 30% on most Canadian Income Trusts, which are similar tax-advantaged entities. The intention, of course, was to capture more tax revenue and make this form of business less attractive to existing corporations. Keep in mind that the U.S. government is seeking ways to generate more tax revenue right now and MLPs are currently exempt from paying corporate taxes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Though MLPs offer an attractive yield, they do carry risks and can lose value. It’s important to recognize these are not simply safe, dividend paying alternatives to stocks or bonds. The risks in these MLPs are particularly acute today with continued demand for high-yield instruments, volatility in oil prices, and the likelihood of rising interest rates in the future.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Strategy</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>At this point in time, we do not view MLPs as a “safety-first” alternative, and advise following these guidelines if investing in MLPs today:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Limit allocation to no more than 10% of the portfolio.</li><li>Diversify among MLPs so you are not invested in just a single partnership.</li><li>Generally avoid buying MLPs in IRAs or other tax-exempt accounts.</li><li>Do your research, just as you would in selecting stocks. Study the partnership before investing and look for strong financial position (including stability of the general partner) and any hidden liabilities, as well as growth potential.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:spacer {\"height\":36} -->\n<div style=\"height:36px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:spacer {\"height\":36} -->\n<div style=\"height:36px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research Special Report originally published March 11, 2011 and updated May 27, 2015.  This report is also available to read in PDF format.  <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/MLPs.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.</p>\n<!-- /wp:paragraph -->','Investing in MLPs: The Rest of the Story','In this era of ultra-low interest rates, investors are inevitably drawn to investments with attractive yields, and Master Limited Partnerships (MLPs) are among the most popular income-generating investments on the market today. Learn the ABCs of MLPs… what you don’t know can hurt you. ','inherit','closed','closed','','2474-revision-v1','','','2021-06-11 21:10:17','2021-06-11 21:10:17','',2474,'https://ns2020-investech.investech.com/?p=8342',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8343,3,'2021-06-11 21:19:42','2021-06-11 21:19:42','<!-- wp:spacer {\"height\":20} -->\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading -->\n<h2>InvesTech Research: A Proven Track Record for over 40 Years</h2>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"left\",\"id\":4264,\"width\":512,\"height\":342,\"sizeSlug\":\"large\",\"className\":\"push-left\"} -->\n<div class=\"wp-block-image push-left\"><figure class=\"alignleft size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/11/office-photo-2-1024x683.jpg\" alt=\"\" class=\"wp-image-4264\" width=\"512\" height=\"342\"/><figcaption>Jim and his staff maintain over 120 years of financial and market data, and create all of the custom analysis software used by InvesTech Research in Whitefish, Montana.</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Based in scenic <a href=\"https://www.whitefishchamber.org/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Whitefish, Montana</a>, InvesTech Research offers a unique “safety-first\" strategy to our readers. Through our proven proprietary models and objective analysis, InvesTech has a 40-year history of accurately predicting market risk – telling investors when to be most bullish and when to become cautious.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research is over 2,200 miles away from Wall Street and we see this distance from main-stream financial industries as a core component of our philosophy and objective methodologies. We love our mountain view and are proud to be “Far From the Madding Crowd,” able to offer our readers the clear, researched, objective market analysis you rely on to inform your investment decisions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3,\"className\":\"unclear\"} -->\n<h3 class=\"unclear\">A Philosophy Based on Experience</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":5161,\"width\":177,\"height\":236,\"sizeSlug\":\"full\",\"linkDestination\":\"none\",\"className\":\"spotlight-blue\"} -->\n<div class=\"wp-block-image spotlight-blue\"><figure class=\"alignright size-full is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/kiplingers-best-2015.jpg\" alt=\"Kiplinger\'s, &quot;The Best List, 2015\" class=\"wp-image-5161\" width=\"177\" height=\"236\"/><figcaption>Rated \"Best Source of Investment Advice\" by Kiplinger’s Personal Finance, 2015</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Formerly a project manager for IBM Research with a number of domestic and international patents to his credit, founder and president Jim Stack has a graduate degree in engineering, with post-graduate study in business. After launching InvesTech Research in 1979, Jim began national circulation of the InvesTech Reseach Market Newsletter in December 1982.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Today, InvesTech publishes the InvesTech Research Market Newsletter, and the Interim Bulletin, which has earned widespread recognition for its time-proven risk allocation strategy, as well as its in-depth analysis of the Federal Reserve. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Learn more about <a href=\"https://ns2020-investech.investech.com/company-philosophy/\">our philosophy</a> here.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Meet the InvesTech Research Team</h2>\n<!-- /wp:heading -->\n\n<!-- wp:group {\"align\":\"wide\",\"className\":\"wide-wrap\"} -->\n<div class=\"wp-block-group alignwide wide-wrap\"><div class=\"wp-block-group__inner-container\"><!-- wp:media-text {\"mediaId\":1745,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/jbs/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/JBS-731x1024.jpg\" alt=\"James Stack, Founder and President, InvesTech Research\" class=\"wp-image-1745 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>James Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>President</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Jim Stack is founder and president of InvesTech Research. Jim is dedicated to helping investors develop an objective, safety-first investment strategy focused on risk management which he provides through his research and writing of the InvesTech Research newsletter.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1713,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/ecp/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/ECP-731x1024.jpg\" alt=\"Eli Petropoulos, Senior Market Analyst, IT\" class=\"wp-image-1713 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Eli Petropoulos</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Senior Market Analyst</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Eli Petropoulos drives idea generation and newsletter content as well as writing for each InvesTech publication. In addition, he is critical to analyzing, maintaining, and interpreting InvesTech’s private financial database and its proprietary indicators.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1748,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/clm/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/CLM-731x1024.jpg\" alt=\"Christina Maloney, Director of Research Services, IT\" class=\"wp-image-1748 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Christina Maloney</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Director of Research Services</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Christina Maloney facilitates and supports daily operations from initial planning to the digital &amp; print publishing stages of the service. She is also highly involved in the newsletter design and website development for the firm.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1714,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/bjg/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/BJG-732x1024.jpg\" alt=\"Bailey Gage, Subscription Manager, IT\" class=\"wp-image-1714 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Bailey Gage</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Subscription Manager</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Bailey Gage provides the highest level of customer service to InvesTech subscribers with accurate subscription processing and detailed account maintenance. She is also a key participant in research and graphic creation for our publications and marketing materials.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1747,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/las-1/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/LAS-1-732x1024.jpg\" alt=\"Lisa Stack, CFO, InvesTech Research\" class=\"wp-image-1747 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Lisa Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Chief Financial Officer</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Lisa Stack participated in growing InvesTech Research in its early years. She is now integral to its financial operations and strategic planning as well as providing leadership to the company’s ongoing vision.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group -->\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container\"><!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:heading {\"textAlign\":\"center\",\"fontSize\":\"medium\"} -->\n<h2 class=\"has-text-align-center has-medium-font-size\">InvesTech Research has been featured in the following publications:</h2>\n<!-- /wp:heading -->\n\n<!-- wp:block {\"ref\":5175} /-->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/in-the-news/\">Find us In the News</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /--></div></div>\n<!-- /wp:group -->\n\n<!-- wp:block {\"ref\":6293} /-->','About Us','','inherit','closed','closed','','777-revision-v1','','','2021-06-11 21:19:42','2021-06-11 21:19:42','',777,'https://ns2020-investech.investech.com/?p=8343',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8344,3,'2021-06-11 21:22:21','2021-06-11 21:22:21','<!-- wp:spacer {\"height\":20} -->\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading -->\n<h2>InvesTech Research: A Proven Track Record for over 40 Years</h2>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"left\",\"id\":4264,\"width\":512,\"height\":342,\"sizeSlug\":\"large\",\"className\":\"push-left\"} -->\n<div class=\"wp-block-image push-left\"><figure class=\"alignleft size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/11/office-photo-2-1024x683.jpg\" alt=\"\" class=\"wp-image-4264\" width=\"512\" height=\"342\"/><figcaption>Jim and his staff maintain over 120 years of financial and market data, and create all of the custom analysis software used by InvesTech Research in Whitefish, Montana.</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Based in scenic <a href=\"https://www.whitefishchamber.org/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Whitefish, Montana</a>, InvesTech Research offers a unique “safety-first\" strategy to our readers. Through our proven proprietary models and objective analysis, InvesTech has a 40-year history of accurately predicting market risk – telling investors when to be most bullish and when to become cautious.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research is over 2,200 miles away from Wall Street and we see this distance from main-stream financial industries as a core component of our philosophy and objective methodologies. We love our mountain view and are proud to be “Far From the Madding Crowd,” able to offer our readers the clear, researched, objective market analysis you rely on to inform your investment decisions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3,\"className\":\"unclear\"} -->\n<h3 class=\"unclear\">A Philosophy Based on Experience</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":5161,\"width\":177,\"height\":236,\"sizeSlug\":\"full\",\"linkDestination\":\"none\",\"className\":\"spotlight-blue\"} -->\n<div class=\"wp-block-image spotlight-blue\"><figure class=\"alignright size-full is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/kiplingers-best-2015.jpg\" alt=\"Kiplinger\'s, &quot;The Best List, 2015\" class=\"wp-image-5161\" width=\"177\" height=\"236\"/><figcaption>Rated \"Best Source of Investment Advice\" by Kiplinger’s Personal Finance, 2015</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Formerly a project manager for IBM Research with a number of domestic and international patents to his credit, founder and president Jim Stack has a graduate degree in engineering, with post-graduate study in business. After launching InvesTech Research in 1979, Jim began national circulation of the <em>InvesTech Reseach</em> newsletter in December 1982.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Today, InvesTech publishes the <em>InvesTech Research</em> newsletter, and the <em>Interim Bulletin</em>, which has earned widespread recognition for its time-proven risk allocation strategy, as well as its in-depth analysis of the Federal Reserve. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Learn more about <a href=\"https://ns2020-investech.investech.com/company-philosophy/\">our philosophy</a> here.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Meet the InvesTech Research Team</h2>\n<!-- /wp:heading -->\n\n<!-- wp:group {\"align\":\"wide\",\"className\":\"wide-wrap\"} -->\n<div class=\"wp-block-group alignwide wide-wrap\"><div class=\"wp-block-group__inner-container\"><!-- wp:media-text {\"mediaId\":1745,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/jbs/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/JBS-731x1024.jpg\" alt=\"James Stack, Founder and President, InvesTech Research\" class=\"wp-image-1745 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>James Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>President</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Jim Stack is founder and president of InvesTech Research. Jim is dedicated to helping investors develop an objective, safety-first investment strategy focused on risk management which he provides through his research and writing of the InvesTech Research newsletter.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1713,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/ecp/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/ECP-731x1024.jpg\" alt=\"Eli Petropoulos, Senior Market Analyst, IT\" class=\"wp-image-1713 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Eli Petropoulos</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Senior Market Analyst</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Eli Petropoulos drives idea generation and newsletter content as well as writing for each InvesTech publication. In addition, he is critical to analyzing, maintaining, and interpreting InvesTech’s private financial database and its proprietary indicators.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1748,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/clm/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/CLM-731x1024.jpg\" alt=\"Christina Maloney, Director of Research Services, IT\" class=\"wp-image-1748 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Christina Maloney</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Director of Research Services</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Christina Maloney facilitates and supports daily operations from initial planning to the digital &amp; print publishing stages of the service. She is also highly involved in the newsletter design and website development for the firm.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1714,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/bjg/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/BJG-732x1024.jpg\" alt=\"Bailey Gage, Subscription Manager, IT\" class=\"wp-image-1714 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Bailey Gage</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Subscription Manager</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Bailey Gage provides the highest level of customer service to InvesTech subscribers with accurate subscription processing and detailed account maintenance. She is also a key participant in research and graphic creation for our publications and marketing materials.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1747,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/las-1/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/LAS-1-732x1024.jpg\" alt=\"Lisa Stack, CFO, InvesTech Research\" class=\"wp-image-1747 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Lisa Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Chief Financial Officer</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Lisa Stack participated in growing InvesTech Research in its early years. She is now integral to its financial operations and strategic planning as well as providing leadership to the company’s ongoing vision.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group -->\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container\"><!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:heading {\"textAlign\":\"center\",\"fontSize\":\"medium\"} -->\n<h2 class=\"has-text-align-center has-medium-font-size\">InvesTech Research has been featured in the following publications:</h2>\n<!-- /wp:heading -->\n\n<!-- wp:block {\"ref\":5175} /-->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/in-the-news/\">Find us In the News</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /--></div></div>\n<!-- /wp:group -->\n\n<!-- wp:block {\"ref\":6293} /-->','About Us','','inherit','closed','closed','','777-revision-v1','','','2021-06-11 21:22:21','2021-06-11 21:22:21','',777,'https://ns2020-investech.investech.com/?p=8344',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8345,3,'2021-06-11 21:23:29','2021-06-11 21:23:29','<!-- wp:spacer {\"height\":44} -->\n<div style=\"height:44px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading -->\n<h2>Why subscribe to the InvesTech Research publications?</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research is governed by a “Safety-First” investment strategy which is committed to helping you protect and conserve your money against losses and to helping you spot tremendous buying opportunities.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"two-cols is-style-green-checkbox\"} -->\n<ul class=\"two-cols is-style-green-checkbox\"><li><strong>We have a proven track record.</strong> For 40 years, we have successfully navigated a volatile market with our “Safety-First” strategy, providing valuable insights to our subscribers.</li><li><strong>Over 120 years of data inform our publications.</strong> InvesTech has developed one of the largest private databanks in the industry including technical, monetary, and macroeconomic data. Through this wealth of market information, we\'re able to spot trends and detect patterns that most other advisories miss.</li><li><strong>Time-proven proprietary indicators and tools.</strong> We are unique in our ability to analyze both the monetary policy of the Federal Reserve as well as the technical health of the stock market, and what it means for your portfolio ahead.</li><li><strong>InvesTech provides 100% independent, objective analysis.</strong> We sell no investment products. We provide an informed objectivity that you will not get from brokers, mutual fund advisors, and even many investment newsletters.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:group {\"className\":\"wall-to-wall pad-3-0 primary-dark\"} -->\n<div class=\"wp-block-group wall-to-wall pad-3-0 primary-dark\"><div class=\"wp-block-group__inner-container\"><!-- wp:group {\"className\":\"make-slick pad-3-0\"} -->\n<div class=\"wp-block-group make-slick pad-3-0\"><div class=\"wp-block-group__inner-container\"><!-- wp:group {\"className\":\"quote-block\"} -->\n<div class=\"wp-block-group quote-block\"><div class=\"wp-block-group__inner-container\"><!-- wp:heading {\"level\":3} -->\n<h3>You have made us a lot of money, but you have saved us even more.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>You have the discipline of a seasoned technician, but you also have the insight of a brilliant theoretician. That is a very rare combination. You have made us a lot of money, but you have saved us even more.</p><cite>– B.P., San Juan Capistrano, CA</cite></blockquote>\n<!-- /wp:quote --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group {\"className\":\"quote-block\"} -->\n<div class=\"wp-block-group quote-block\"><div class=\"wp-block-group__inner-container\"><!-- wp:heading {\"level\":3} -->\n<h3>Fundamental insights.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>I’d like to offer a special word of praise for all the work the entire InvesTech staff of professionals does to help bring meaningful technical and fundamental insights to the attention of your subscribers. There is no one who can compare with what you do or the way in which you do it.</p><cite>– P.E.P., Ph.D. Okemos, MI</cite></blockquote>\n<!-- /wp:quote --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group {\"className\":\"quote-block\"} -->\n<div class=\"wp-block-group quote-block\"><div class=\"wp-block-group__inner-container\"><!-- wp:heading {\"level\":3} -->\n<h3>Sanity!</h3>\n<!-- /wp:heading -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>You guys add sanity to more than counterbalance what you see and hear in the so-called ‘business news.’ Thank you for helping me keep my family’s financial plan on course.</p><cite>– F.D., Baldwinsville, NY</cite></blockquote>\n<!-- /wp:quote --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group {\"className\":\"quote-block\"} -->\n<div class=\"wp-block-group quote-block\"><div class=\"wp-block-group__inner-container\"><!-- wp:heading {\"level\":3} -->\n<h3>\"Top of the Class\" independent thinking.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>I have followed Jim carefully over these many years, and I am absolutely convinced that he is the ‘top of the class’ of independent thinkers.</p><cite>– C.C., Inverness, IL</cite></blockquote>\n<!-- /wp:quote --></div></div>\n<!-- /wp:group --></div></div>\n<!-- /wp:group --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:heading -->\n<h2>Trusted insight and analysis backed by our 40-year proven track record.</h2>\n<!-- /wp:heading --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:paragraph -->\n<p>InvesTech has successfully navigated the past 40 years of market gyrations and major bear markets, including the 1987 Crash, the Tech Bubble of the late 1990s, and the 2007 Housing Bubble and Great Recession. InvesTech transforms the art of technical analysis into a more precise “science” – easily explained for both seasoned professionals and non-technical investors.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:block {\"ref\":5182} /-->\n\n<!-- wp:paragraph -->\n<p>Become a subscriber today for full access to our publications, proprietary indicators, market insights, and other tools.  Call our office at (406) 862-7777 (Monday-Friday, 8:30 am-5:00 pm Mountain Time) with any questions.  <strong>We are here to assist you!</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons {\"contentJustification\":\"center\",\"className\":\"redBtn\"} -->\n<div class=\"wp-block-buttons is-content-justification-center redBtn\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/product/subscriptions/\">Become a Subscriber</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:block {\"ref\":6469} /-->\n\n<!-- wp:group {\"className\":\"wall-to-wall neutral-warm pad-3-0\"} -->\n<div class=\"wp-block-group wall-to-wall neutral-warm pad-3-0\"><div class=\"wp-block-group__inner-container\"><!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\"><!-- wp:image {\"align\":\"center\",\"id\":5104,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/award-cup.svg\" alt=\"A magnificent trophy\" class=\"wp-image-5104\"/></figure></div>\n<!-- /wp:image --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"45%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:45%\"><!-- wp:image {\"id\":5105,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/kiplinger-logo.svg\" alt=\"Kiplinger Logo\" class=\"wp-image-5105\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Rated Best Source of Investment Advice by Kiplinger Personal Finance Magazine.</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph {\"className\":\"red-caps\"} -->\n<p class=\"red-caps\"><strong>Best Stock Market Letter</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph {\"className\":\"em-red\"} -->\n<p class=\"em-red\">InvesTech Research, which promises ‘safety-first profits,’ has bested the overall stock market over the long haul with less risk. Publisher James Stack analyzes economic, monetary and market data (some going back more than 100 years) to make market calls and recommend allocations. <em>– Kiplinger Personal Finance</em></p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"15%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:15%\"></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:gallery {\"ids\":[2808,2809,2810,2897,2811,2899],\"linkTo\":\"none\",\"className\":\"multiply\"} -->\n<figure class=\"wp-block-gallery columns-3 is-cropped multiply\"><ul class=\"blocks-gallery-grid\"><li class=\"blocks-gallery-item\"><figure><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/Forbes.png\" alt=\"\" data-id=\"2808\" data-full-url=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/Forbes.png\" data-link=\"https://ns2020-investech.investech.com/forbes/\" class=\"wp-image-2808\"/></figure></li><li class=\"blocks-gallery-item\"><figure><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2019/11/Yahoo-Finance.png\" alt=\"\" data-id=\"2809\" data-full-url=\"https://ns2020-investech.investech.com/wp-content/uploads/2019/11/Yahoo-Finance.png\" data-link=\"https://ns2020-investech.investech.com/yahoo-finance/\" class=\"wp-image-2809\"/></figure></li><li class=\"blocks-gallery-item\"><figure><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2019/08/MoneyShow.png\" alt=\"\" data-id=\"2810\" data-full-url=\"https://ns2020-investech.investech.com/wp-content/uploads/2019/08/MoneyShow.png\" data-link=\"https://ns2020-investech.investech.com/moneyshow/\" class=\"wp-image-2810\"/></figure></li><li class=\"blocks-gallery-item\"><figure><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/Barrons.png\" alt=\"\" data-id=\"2897\" data-full-url=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/Barrons.png\" data-link=\"https://ns2020-investech.investech.com/in-the-news/barrons/\" class=\"wp-image-2897\"/></figure></li><li class=\"blocks-gallery-item\"><figure><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2019/07/Marketwatch.png\" alt=\"\" data-id=\"2811\" data-full-url=\"https://ns2020-investech.investech.com/wp-content/uploads/2019/07/Marketwatch.png\" data-link=\"https://ns2020-investech.investech.com/marketwatch/\" class=\"wp-image-2811\"/></figure></li><li class=\"blocks-gallery-item\"><figure><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/New-York-Times.png\" alt=\"\" data-id=\"2899\" data-full-url=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/08/New-York-Times.png\" data-link=\"https://ns2020-investech.investech.com/in-the-news/new-york-times/\" class=\"wp-image-2899\"/></figure></li></ul></figure>\n<!-- /wp:gallery --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:block {\"ref\":5343} /-->\n\n<!-- wp:heading -->\n<h2>Subscriber Library</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Curated articles from our publication archive available to subscribers at all levels.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:acf/subscriber-content-teaser {\n    \"id\": \"block_604bb05a5584e\",\n    \"name\": \"acf\\/subscriber-content-teaser\",\n    \"data\": {\n        \"post_to_show\": [\n            \"2497\",\n            \"2418\",\n            \"2468\"\n        ],\n        \"_post_to_show\": \"field_5f2aeab7381f9\",\n        \"post_type_to_show\": \"investech-library\",\n        \"_post_type_to_show\": \"field_5f2aec3f2eccd\",\n        \"number_to_show\": \"3\",\n        \"_number_to_show\": \"field_5f2aec6a2ecce\"\n    },\n    \"align\": \"\",\n    \"mode\": \"edit\"\n} /-->\n\n<!-- wp:group {\"className\":\"wall-to-wall neutral-warm\"} -->\n<div class=\"wp-block-group wall-to-wall neutral-warm\"><div class=\"wp-block-group__inner-container\"><!-- wp:spacer {\"height\":44} -->\n<div style=\"height:44px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading -->\n<h2>About InvesTech Research</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Dedicated to bringing sophisticated analysis of the stock market to the average investor, InvesTech Research began national circulation of its Narket Newsletter in December 1982. Today, InvesTech publishes the InvesTech Research Market Newsletter, and the Interim Bulletin, which has earned widespread recognition for its time-proven risk allocation strategy, as well as its in-depth analysis of the Federal Reserve. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p><a href=\"https://ns2020-investech.investech.com/about-investech/\">Learn more about InvesTech Research here.</a></p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:image {\"id\":2230,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/Webcam-1-1024x576.jpg\" alt=\"\" class=\"wp-image-2230\"/><figcaption>Looking north from our office, we have an incredible view of Big Mountain, which stands just west of Glacier National Park and is part of the Flathead National Forest. View our live webcam, weather and daylight permitting. If the clouds have rolled in, then you can also browse some of our favorite photos taken on nicer days.</figcaption></figure>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:spacer {\"height\":44} -->\n<div style=\"height:44px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer --></div></div>\n<!-- /wp:group -->','Your Guide to “Safety First” Profits','','inherit','closed','closed','','4-revision-v1','','','2021-06-11 21:23:29','2021-06-11 21:23:29','',4,'https://ns2020-investech.investech.com/?p=8345',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (17400,3,'2023-04-26 09:42:07','2023-04-26 15:42:07','','killer-wave-darker','','inherit','closed','closed','','killer-wave-darker','','','2023-04-26 09:42:07','2023-04-26 15:42:07','',0,'https://ns2020-investech.investech.com/wp-content/uploads/2023/04/killer-wave-darker.jpg',0,'attachment','image/jpeg',0);
INSERT INTO `wp_posts` VALUES (17610,3,'2023-04-27 16:28:52','2023-04-27 22:28:52','<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">InvesTech boldly advised subscribers that the markets were \"heading for a buying opportunity of a lifetime!</h2>\n<!-- /wp:heading -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:paragraph -->\n<p><em>Mar. 10, 2009 </em>- Stack says most investors will miss a big chunk of the rebound, so he\'s recommending a healthy allocation in stocks.  \"By the time you feel comfortable that the bottom is in place, you\'ll be uncomfortable going in because the Dow Jones industrial average will be up 1,000 or 1,500 points.\"</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":10530,\"width\":300,\"height\":145,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-full is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/08/kiplinger.jpg\" alt=\"\" class=\"wp-image-10530\" width=\"300\" height=\"145\"/></figure>\n<!-- /wp:image --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:33.33%\"><!-- wp:paragraph -->\n<p>[smartslider3 slider=\"7\"]</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"/>\n<!-- /wp:separator -->\n\n<!-- wp:heading {\"UAGDay\":[]} -->\n<h2 class=\"wp-block-heading\">In March 2009...</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p> This issue was published just 4 days after the Bear Market Bottom and focused on the important topic: “Why we believe the stock market is approaching a buying opportunity of a lifetime.\"</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:pdfemb/pdf-embedder-viewer {\"pdfID\":3322,\"url\":\"https://ns2020-investech.investech.com/wp-content/uploads/2020/09/V09I03.pdf\",\"toolbar\":\"both\",\"toolbarfixed\":\"on\"} -->\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"></p>\n<!-- /wp:pdfemb/pdf-embedder-viewer -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"type\":\"previous\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"textAlign\":\"right\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"/>\n<!-- /wp:separator -->','Bear Market Bottom of March 2009','This issue was published just 4 days after the Bear Market Bottom and focused on the important topic: “Why we believe the stock market is approaching a buying opportunity of a lifetime.\"','inherit','closed','closed','','12220-revision-v1','','','2023-04-27 16:28:52','2023-04-27 22:28:52','',12220,'https://ns2020-investech.investech.com/?p=17610',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (17395,3,'2023-04-26 09:14:12','2023-04-26 15:14:12','<!-- wp:heading -->\n<h2 class=\"wp-block-heading\">And, at the bottom of the Financial Crisis, InvesTech Research called the Buying Opportunity of a Lifetime!</h2>\n<!-- /wp:heading -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":10530,\"mediaLink\":\"https://www.investech.com/in-the-news/kiplinger-2/\",\"mediaType\":\"image\",\"mediaWidth\":41,\"UAGDay\":[]} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 41%\"><div class=\"wp-block-media-text__content\"><!-- wp:paragraph {\"placeholder\":\"Content…\"} -->\n<p><em>Mar. 10, 2009 </em>- Stack says most investors will miss a big chunk of the rebound, so he\'s recommending a healthy allocation in stocks.  \"By the time you feel comfortable that the bottom is in place, you\'ll be uncomfortable going in because the Dow Jones industrial average will be up 1,000 or 1,500 points.\"</p>\n<!-- /wp:paragraph --></div><figure class=\"wp-block-media-text__media\"><img src=\"https://www.investech.com/wp-content/uploads/2021/08/kiplinger.jpg\" alt=\"\" class=\"wp-image-10530 size-full\"/></figure></div>\n<!-- /wp:media-text -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"type\":\"previous\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"textAlign\":\"right\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"/>\n<!-- /wp:separator -->\n\n<!-- wp:heading {\"UAGDay\":[]} -->\n<h2 class=\"wp-block-heading\">A Tale of Two Bear Markets</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p> This issue was published just 4 days after the Bear Market Bottom and focused on the important topic: “Why we believe the stock market is approaching a buying opportunity of a lifetime.\"</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:pdfemb/pdf-embedder-viewer {\"pdfID\":3322,\"url\":\"https://ns2020-investech.investech.com/wp-content/uploads/2020/09/V09I03.pdf\",\"toolbar\":\"both\",\"toolbarfixed\":\"on\"} -->\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"></p>\n<!-- /wp:pdfemb/pdf-embedder-viewer -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"type\":\"previous\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"textAlign\":\"right\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->','Bear Market Bottom of March 2009','This issue was published just 4 days after the Bear Market Bottom and focused on the important topic: “Why we believe the stock market is approaching a buying opportunity of a lifetime.\"','inherit','closed','closed','','12220-revision-v1','','','2023-04-26 09:14:12','2023-04-26 15:14:12','',12220,'https://ns2020-investech.investech.com/?p=17395',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (17398,3,'2023-04-26 09:22:40','2023-04-26 15:22:40','<!-- wp:heading -->\n<h2 class=\"wp-block-heading\"><strong>Just 13 days after this issue was mailed</strong>...</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The stock market blasted off on an advance that would take it up more than 1000 DJIA points.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"textAlign\":\"center\",\"level\":3,\"UAGDay\":[]} -->\n<h3 class=\"wp-block-heading has-text-align-center\"> Read the InvesTech Research newsletter published January 4, 1991 </h3>\n<!-- /wp:heading -->\n\n<!-- wp:pdfemb/pdf-embedder-viewer {\"pdfID\":3319,\"url\":\"https://ns2020-investech.investech.com/wp-content/uploads/2020/09/V91I01.pdf\",\"toolbar\":\"both\",\"toolbarfixed\":\"on\"} -->\n<p class=\"wp-block-pdfemb-pdf-embedder-viewer\"></p>\n<!-- /wp:pdfemb/pdf-embedder-viewer -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"type\":\"previous\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"textAlign\":\"right\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->','Decade-long bull market of the 1990s','Just 13 days after this issue was mailed, the stock market blasted off on an advance which would take it up more than 1000 DJIA points.','inherit','closed','closed','','12210-revision-v1','','','2023-04-26 09:22:40','2023-04-26 15:22:40','',12210,'https://ns2020-investech.investech.com/?p=17398',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (17397,3,'2023-04-26 09:21:34','2023-04-26 15:21:34','<!-- wp:heading {\"textAlign\":\"center\",\"UAGDay\":[]} -->\n<h2 class=\"wp-block-heading has-text-align-center\">Prior to the Housing Bubble Burst and the 2008-09 Financial Crisis... </h2>\n<!-- /wp:heading -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":2811,\"mediaLink\":\"https://www.investech.com/marketwatch/\",\"mediaType\":\"image\",\"mediaWidth\":43,\"UAGDay\":[]} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\" style=\"grid-template-columns:auto 43%\"><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3,\"fontSize\":\"medium\"} -->\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Newsletter editor gets defensive</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><em>Sept. 6, 2007 </em>- InvesTech says that \"Bull markets don\'t die of old age, they die from deterioration and economic imbalances, and we are seeing economic imbalances now.\"</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button {\"UAGDay\":[]} -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https://www.marketwatch.com/story/newsletter-editor-hunkers-down-with-50-cash-position\" target=\"_blank\" rel=\"noreferrer noopener\">Read Article</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div><figure class=\"wp-block-media-text__media\"><img src=\"https://www.investech.com/wp-content/uploads/2019/07/Marketwatch.png\" alt=\"MarketWatch logo\" class=\"wp-image-2811 size-full\"/></figure></div>\n<!-- /wp:media-text -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"/>\n<!-- /wp:separator -->\n\n<!-- wp:heading {\"level\":3,\"fontSize\":\"medium\"} -->\n<h3 class=\"wp-block-heading has-medium-font-size\"><strong>Surviving in a Hostile Market</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><em>Nov. 2007 - George Brooks:</em>  The wild card today, according to Stack, is the bursting of the housing bubble, which developed more as a result of leveraged mortgage products than from overpriced houses. It\'s only a matter of time, he says, until the housing debacle and credit crisis adversely impact the overall economy, increasing the likelihood of a recession.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:spacer {\"height\":\"32px\"} -->\n<div style=\"height:32px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"type\":\"previous\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"textAlign\":\"right\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"/>\n<!-- /wp:separator -->\n\n<!-- wp:heading {\"textAlign\":\"center\"} -->\n<h2 class=\"wp-block-heading has-text-align-center\">InvesTech Issued this warning prior to the Housing Bubble Burst!</h2>\n<!-- /wp:heading -->\n\n<!-- wp:media-text {\"mediaId\":31333,\"mediaLink\":\"https://www.investech.com/investech-record/investech/\",\"mediaType\":\"image\",\"mediaWidth\":44} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile\" style=\"grid-template-columns:44% auto\"><figure class=\"wp-block-media-text__media\"><img src=\"https://www.investech.com/wp-content/uploads/2022/07/investech.png\" alt=\"\" class=\"wp-image-31333 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3,\"align\":\"center\"} -->\n<h3 class=\"wp-block-heading\"><strong>Bear Market Warning Flags!</strong></h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><em>July 27, 2007 </em>- Since our last issue, the DJIA has hit nine new record-closing highs. Yet, at the same time, two of our primary indicators have turned bearish...</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons {\"layout\":{\"type\":\"flex\",\"justifyContent\":\"right\"}} -->\n<div class=\"wp-block-buttons\"><!-- wp:button {\"UAGDay\":[]} -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link wp-element-button\" href=\"https://www.investech.com/wp-content/uploads/2020/09/V07I08.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Read Newsletter</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator has-alpha-channel-opacity\"/>\n<!-- /wp:separator -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"type\":\"previous\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:post-navigation-link {\"textAlign\":\"right\",\"showTitle\":true,\"arrow\":\"arrow\"} /--></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->','2008-09 Financial Crisis','With the nominal value of global derivatives over $271-Trillion, we answered the critical question: “How do we protect our portfolios from this Gorilla if it gets unleashed?”','inherit','closed','closed','','17365-revision-v1','','','2023-04-26 09:21:34','2023-04-26 15:21:34','',17365,'https://ns2020-investech.investech.com/?p=17397',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (17393,3,'2023-04-25 15:20:35','2023-04-25 21:20:35','','HOUSING','','inherit','closed','closed','','housing','','','2023-04-25 15:20:35','2023-04-25 21:20:35','',17365,'https://ns2020-investech.investech.com/wp-content/uploads/2007/04/HOUSING.jpg',0,'attachment','image/jpeg',0);
INSERT INTO `wp_posts` VALUES (8350,3,'2021-06-11 21:32:27','2021-06-11 21:32:27','<!-- wp:spacer {\"height\":20} -->\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading -->\n<h2>InvesTech Research: A Proven Track Record for over 40 Years</h2>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"left\",\"id\":4264,\"width\":512,\"height\":342,\"sizeSlug\":\"large\",\"className\":\"push-left\"} -->\n<div class=\"wp-block-image push-left\"><figure class=\"alignleft size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/11/office-photo-2-1024x683.jpg\" alt=\"\" class=\"wp-image-4264\" width=\"512\" height=\"342\"/><figcaption>Jim and his staff maintain over 120 years of financial and market data, and create all of the custom analysis software used by InvesTech Research in Whitefish, Montana.</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Based in scenic <a href=\"https://www.whitefishchamber.org/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Whitefish, Montana</a>, InvesTech Research offers a unique “safety-first\" strategy to our readers. Through our proven proprietary models and objective analysis, InvesTech has a 40-year history of accurately predicting market risk – telling investors when to be most bullish and when to become cautious.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research is over 2,200 miles away from Wall Street and we see this distance from main-stream financial industries as a core component of our philosophy and objective methodologies. We love our mountain view and are proud to be “Far From the Madding Crowd,” able to offer our readers the clear, researched, objective market analysis you rely on to inform your investment decisions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3,\"className\":\"unclear\"} -->\n<h3 class=\"unclear\">A Philosophy Based on Experience</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":5161,\"width\":177,\"height\":236,\"sizeSlug\":\"full\",\"linkDestination\":\"none\",\"className\":\"spotlight-blue\"} -->\n<div class=\"wp-block-image spotlight-blue\"><figure class=\"alignright size-full is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/kiplingers-best-2015.jpg\" alt=\"Kiplinger\'s, &quot;The Best List, 2015\" class=\"wp-image-5161\" width=\"177\" height=\"236\"/><figcaption>Rated \"Best Source of Investment Advice\" by Kiplinger’s Personal Finance, 2015</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Today, InvesTech publishes the <em>InvesTech Research</em> <em>Newsletter</em>, and the <em>Interim Bulletin</em>, which has earned widespread recognition for its time-proven risk allocation strategy, as well as its in-depth analysis of the Federal Reserve. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Learn more about <a href=\"https://ns2020-investech.investech.com/company-philosophy/\">our philosophy</a> here.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Meet the InvesTech Research Team</h2>\n<!-- /wp:heading -->\n\n<!-- wp:group {\"align\":\"wide\",\"className\":\"wide-wrap\"} -->\n<div class=\"wp-block-group alignwide wide-wrap\"><div class=\"wp-block-group__inner-container\"><!-- wp:media-text {\"mediaId\":1745,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/jbs/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/JBS-731x1024.jpg\" alt=\"James Stack, Founder and President, InvesTech Research\" class=\"wp-image-1745 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>James Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>President</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Jim Stack is founder and president of InvesTech Research. Jim is dedicated to helping investors develop an objective, safety-first investment strategy focused on risk management which he provides through his research and writing of the InvesTech Research newsletter.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1713,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/ecp/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/ECP-731x1024.jpg\" alt=\"Eli Petropoulos, Senior Market Analyst, IT\" class=\"wp-image-1713 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Eli Petropoulos</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Senior Market Analyst</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Eli Petropoulos drives idea generation and newsletter content as well as writing for each InvesTech publication. In addition, he is critical to analyzing, maintaining, and interpreting InvesTech’s private financial database and its proprietary indicators.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1748,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/clm/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/CLM-731x1024.jpg\" alt=\"Christina Maloney, Director of Research Services, IT\" class=\"wp-image-1748 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Christina Maloney</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Director of Research Services</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Christina Maloney facilitates and supports daily operations from initial planning to the digital &amp; print publishing stages of the service. She is also highly involved in the newsletter design and website development for the firm.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1714,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/bjg/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/BJG-732x1024.jpg\" alt=\"Bailey Gage, Subscription Manager, IT\" class=\"wp-image-1714 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Bailey Gage</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Subscription Manager</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Bailey Gage provides the highest level of customer service to InvesTech subscribers with accurate subscription processing and detailed account maintenance. She is also a key participant in research and graphic creation for our publications and marketing materials.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1747,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/las-1/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/LAS-1-732x1024.jpg\" alt=\"Lisa Stack, CFO, InvesTech Research\" class=\"wp-image-1747 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Lisa Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Chief Financial Officer</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Lisa Stack participated in growing InvesTech Research in its early years. She is now integral to its financial operations and strategic planning as well as providing leadership to the company’s ongoing vision.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group -->\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container\"><!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:heading {\"textAlign\":\"center\",\"fontSize\":\"medium\"} -->\n<h2 class=\"has-text-align-center has-medium-font-size\">InvesTech Research has been featured in the following publications:</h2>\n<!-- /wp:heading -->\n\n<!-- wp:block {\"ref\":5175} /-->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/in-the-news/\">Find us In the News</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /--></div></div>\n<!-- /wp:group -->\n\n<!-- wp:block {\"ref\":6293} /-->','About Us','','inherit','closed','closed','','777-revision-v1','','','2021-06-11 21:32:27','2021-06-11 21:32:27','',777,'https://ns2020-investech.investech.com/?p=8350',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8351,3,'2021-06-11 21:33:13','2021-06-11 21:33:13','<!-- wp:spacer {\"height\":20} -->\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading -->\n<h2>InvesTech Research: A Proven Track Record for over 40 Years</h2>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"left\",\"id\":4264,\"width\":512,\"height\":342,\"sizeSlug\":\"large\",\"className\":\"push-left\"} -->\n<div class=\"wp-block-image push-left\"><figure class=\"alignleft size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/11/office-photo-2-1024x683.jpg\" alt=\"\" class=\"wp-image-4264\" width=\"512\" height=\"342\"/><figcaption>Jim and his staff maintain over 120 years of financial and market data, and create all of the custom analysis software used by InvesTech Research in Whitefish, Montana.</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Based in scenic <a href=\"https://www.whitefishchamber.org/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Whitefish, Montana</a>, InvesTech Research offers a unique “safety-first\" strategy to our readers. Through our proven proprietary models and objective analysis, InvesTech has a 40-year history of accurately predicting market risk – telling investors when to be most bullish and when to become cautious.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research is over 2,200 miles away from Wall Street and we see this distance from main-stream financial industries as a core component of our philosophy and objective methodologies. We love our mountain view and are proud to be “Far From the Madding Crowd,” able to offer our readers the clear, researched, objective market analysis you rely on to inform your investment decisions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3,\"className\":\"unclear\"} -->\n<h3 class=\"unclear\">A Philosophy Based on Experience</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":5161,\"width\":177,\"height\":236,\"sizeSlug\":\"full\",\"linkDestination\":\"none\",\"className\":\"spotlight-blue\"} -->\n<div class=\"wp-block-image spotlight-blue\"><figure class=\"alignright size-full is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/kiplingers-best-2015.jpg\" alt=\"Kiplinger\'s, &quot;The Best List, 2015\" class=\"wp-image-5161\" width=\"177\" height=\"236\"/><figcaption>Rated \"Best Source of Investment Advice\" by Kiplinger’s Personal Finance, 2015</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Formerly a project manager for IBM Research with a number of domestic and international patents to his credit, founder and president Jim Stack has a graduate degree in engineering, with post-graduate study in business. After launching InvesTech Research in 1979, Jim began national circulation of the <em>InvesTech Reseach</em> <em>Newsletter </em>in December 1982.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Today, InvesTech publishes the <em>InvesTech Research</em> <em>Newsletter</em>, and the <em>Interim Bulletin</em>, which has earned widespread recognition for its time-proven risk allocation strategy, as well as its in-depth analysis of the Federal Reserve. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Learn more about <a href=\"https://ns2020-investech.investech.com/company-philosophy/\">our philosophy</a> here.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Meet the InvesTech Research Team</h2>\n<!-- /wp:heading -->\n\n<!-- wp:group {\"align\":\"wide\",\"className\":\"wide-wrap\"} -->\n<div class=\"wp-block-group alignwide wide-wrap\"><div class=\"wp-block-group__inner-container\"><!-- wp:media-text {\"mediaId\":1745,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/jbs/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/JBS-731x1024.jpg\" alt=\"James Stack, Founder and President, InvesTech Research\" class=\"wp-image-1745 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>James Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>President</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Jim Stack is founder and president of InvesTech Research. Jim is dedicated to helping investors develop an objective, safety-first investment strategy focused on risk management which he provides through his research and writing of the InvesTech Research newsletter.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1713,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/ecp/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/ECP-731x1024.jpg\" alt=\"Eli Petropoulos, Senior Market Analyst, IT\" class=\"wp-image-1713 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Eli Petropoulos</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Senior Market Analyst</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Eli Petropoulos drives idea generation and newsletter content as well as writing for each InvesTech publication. In addition, he is critical to analyzing, maintaining, and interpreting InvesTech’s private financial database and its proprietary indicators.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1748,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/clm/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/CLM-731x1024.jpg\" alt=\"Christina Maloney, Director of Research Services, IT\" class=\"wp-image-1748 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Christina Maloney</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Director of Research Services</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Christina Maloney facilitates and supports daily operations from initial planning to the digital &amp; print publishing stages of the service. She is also highly involved in the newsletter design and website development for the firm.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1714,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/bjg/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/BJG-732x1024.jpg\" alt=\"Bailey Gage, Subscription Manager, IT\" class=\"wp-image-1714 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Bailey Gage</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Subscription Manager</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Bailey Gage provides the highest level of customer service to InvesTech subscribers with accurate subscription processing and detailed account maintenance. She is also a key participant in research and graphic creation for our publications and marketing materials.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1747,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/las-1/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/LAS-1-732x1024.jpg\" alt=\"Lisa Stack, CFO, InvesTech Research\" class=\"wp-image-1747 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Lisa Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Chief Financial Officer</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Lisa Stack participated in growing InvesTech Research in its early years. She is now integral to its financial operations and strategic planning as well as providing leadership to the company’s ongoing vision.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group -->\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container\"><!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:heading {\"textAlign\":\"center\",\"fontSize\":\"medium\"} -->\n<h2 class=\"has-text-align-center has-medium-font-size\">InvesTech Research has been featured in the following publications:</h2>\n<!-- /wp:heading -->\n\n<!-- wp:block {\"ref\":5175} /-->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/in-the-news/\">Find us In the News</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /--></div></div>\n<!-- /wp:group -->\n\n<!-- wp:block {\"ref\":6293} /-->','About Us','','inherit','closed','closed','','777-revision-v1','','','2021-06-11 21:33:13','2021-06-11 21:33:13','',777,'https://ns2020-investech.investech.com/?p=8351',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8352,3,'2021-06-11 21:34:20','2021-06-11 21:34:20','<!-- wp:heading -->\n<h2>Career Opportunities at InvesTech Research</h2>\n<!-- /wp:heading -->\n\n<!-- wp:media-text {\"mediaId\":7393,\"mediaLink\":\"https://ns2020-investech.investech.com/careers/it-office/\",\"mediaType\":\"image\",\"imageFill\":true,\"className\":\"push-left\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile is-image-fill push-left\"><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https://ns2020-investech.investech.com/wp-content/uploads/2021/04/it-office-1024x612.jpg);background-position:50% 50%\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/04/it-office-1024x612.jpg\" alt=\"\" class=\"wp-image-7393 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph {\"placeholder\":\"Content…\",\"fontSize\":\"medium\"} -->\n<p class=\"has-medium-font-size\">Located far from Wall Street in scenic Whitefish, Montana, InvesTech publishes the <em>InvesTech Research</em> <em>Newsletter</em>, which has earned widespread recognition for its time-proven risk allocation strategy. The InvesTech Research team is comprised of professionals who thrive in a high-energy, fast-paced culture of excellence and teamwork.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:spacer {\"height\":40} -->\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Senior Market Analyst</h3>\n<!-- /wp:heading -->\n\n<!-- wp:separator {\"className\":\"is-style-default\"} -->\n<hr class=\"wp-block-separator is-style-default\"/>\n<!-- /wp:separator -->\n\n<!-- wp:paragraph -->\n<p>We are currently offering a challenging and rewarding career opportunity for the right professional to join our team as a Senior Market Strategist.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:paragraph -->\n<p><strong>Responsibilities Include:</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Write compelling content that can be leveraged across a variety of media for our subscribers</li><li>Ensure consistency with firm\'s voice, key messages, and editorial style across all communication channels</li><li>Participate in business development, firm presentations, webcasts, and special events</li><li>Monitor and analyze economic releases and other market data</li><li>Contribute to team decisions on portfolio strategy involving equity market research</li><li>Assist in research, analysis, and development of proprietary indicators</li></ul>\n<!-- /wp:list --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:paragraph -->\n<p><strong>Qualifications:</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>8+ years of experience in the financial industry with a focus on risk management philosophy</li><li>Possess a proven understanding of and passion for financial markets, economics, and monetary policy</li><li>Exceptional written and oral communication skills</li><li>Bachelors degree in Business, Finance, Economics, or related field</li><li>Chartered Financial Analyst (CFA) or Chartered Market Technician (CMT) designation preferred</li></ul>\n<!-- /wp:list --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button {\"className\":\"is-style-high-impact\"} -->\n<div class=\"wp-block-button is-style-high-impact\"><a class=\"wp-block-button__link\" href=\"/join-investech/\" target=\"_blank\" rel=\"noreferrer noopener\">Join InvesTech</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:group {\"className\":\"wall-to-wall neutral-warm\"} -->\n<div class=\"wp-block-group wall-to-wall neutral-warm\"><div class=\"wp-block-group__inner-container\"><!-- wp:columns {\"backgroundColor\":\"warm-grey\"} -->\n<div class=\"wp-block-columns has-warm-grey-background-color has-background\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading -->\n<h2>Career Opportunities with Stack Financial Management</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Please take a moment to explore opportunities with our sister company Stack Financial Management. SFM is separate and independent of InvesTech Research, yet employs the same safety-first philosophy and technical approach first used by InvesTech Research.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"30%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:30%\"><!-- wp:image {\"id\":6253,\"sizeSlug\":\"large\",\"linkDestination\":\"none\",\"className\":\"multiply\"} -->\n<figure class=\"wp-block-image size-large multiply\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/03/Stack-Logo-CMYK.jpg\" alt=\"\" class=\"wp-image-6253\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button {\"className\":\"hover: green\"} -->\n<div class=\"wp-block-button hover: green\"><a class=\"wp-block-button__link\" href=\"https://www.stackfinancialmanagement.com/careers/\" target=\"_blank\" rel=\"noreferrer noopener\">Explore Careers</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:spacer {\"height\":30} -->\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why Whitefish, Montana?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Living and working in Whitefish is a fantastic opportunity for anyone who loves nature and the outdoors. Our office is located near Big Mountain and Whitefish Mountain Resort, and is just 40 minutes from Glacier National Park. Take a look at what Whitefish living has to offer:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:block {\"ref\":5028} /-->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->','Careers','','inherit','closed','closed','','887-revision-v1','','','2021-06-11 21:34:20','2021-06-11 21:34:20','',887,'https://ns2020-investech.investech.com/?p=8352',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8354,2,'2021-06-11 21:34:49','2021-06-11 21:34:49','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8353,\"mediaLink\":\"https://ns2020-investech.investech.com/glacier-national-park/glacier-national-park-pexels-photo-206796/\",\"mediaType\":\"image\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/04/glacier-national-park-pexels-photo-206796.png\" alt=\"\" class=\"wp-image-8353 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>Crown of the Continent</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Come and experience Glacier\'s pristine forests, alpine meadows, rugged mountains, and spectacular lakes. With over 700 miles of trails, Glacier is a hiker\'s paradise for adventurous visitors seeking wilderness and solitude. Relive the days of old through historic chalets, lodges, and the famous Going-to-the-Sun Road. Explore Glacier National Park and discover what awaits you.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Visit <a href=\"https://www.nps.gov/glac/index.htm\" target=\"_blank\" rel=\"noreferrer noopener\">Glacier National Park.</a></p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->','Glacier National Park','Come and experience Glacier\'s pristine forests, alpine meadows, rugged mountains, and spectacular lakes. With over 700 miles of trails, Glacier is a hiker\'s paradise for adventurous visitors seeking wilderness and solitude. Relive the days of old through historic chalets, lodges, and the famous Going-to-the-Sun Road. Explore Glacier National Park and discover what awaits you.','inherit','closed','closed','','6882-revision-v1','','','2021-06-11 21:34:49','2021-06-11 21:34:49','',6882,'https://ns2020-investech.investech.com/?p=8354',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8356,3,'2021-06-11 21:44:21','2021-06-11 21:44:21','<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":8355,\"mediaLink\":\"https://ns2020-investech.investech.com/whitefishmtusa-juli32019-mainstreetinwhitefish/\",\"mediaType\":\"image\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/shutterstock_1656675451-whitefish-1024x515.jpg\" alt=\"\" class=\"wp-image-8355 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading -->\n<h2>City of Whitefish</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Located in the Northern Rocky Mountains of Montana, Whitefish is nestled at the edge of Glacier National Park. Each season offers breathtaking opportunity to experience the millions of acres of mountains, forests, lakes, and rivers.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Visit <a href=\"https://explorewhitefish.com/\" target=\"_blank\" rel=\"noreferrer noopener\">Explore Whitefish.</a></p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->','Explore Whitefish','Located in the Northern Rocky Mountains of Montana, Whitefish is nestled at the edge of Glacier National Park. Each season offers breathtaking opportunity to experience the millions of acres of mountains, forests, lakes, and rivers.','inherit','closed','closed','','6877-revision-v1','','','2021-06-11 21:44:21','2021-06-11 21:44:21','',6877,'https://ns2020-investech.investech.com/?p=8356',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8357,3,'2021-06-11 22:32:21','2021-06-11 22:32:21','<!-- wp:spacer {\"height\":20} -->\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading -->\n<h2>InvesTech Research: A Proven Track Record for over 40 Years</h2>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"left\",\"id\":4264,\"width\":512,\"height\":342,\"sizeSlug\":\"large\",\"className\":\"push-left\"} -->\n<div class=\"wp-block-image push-left\"><figure class=\"alignleft size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/11/office-photo-2-1024x683.jpg\" alt=\"\" class=\"wp-image-4264\" width=\"512\" height=\"342\"/><figcaption>Jim and his staff maintain over 120 years of financial and market data, and create all of the custom analysis software used by InvesTech Research in Whitefish, Montana.</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Based in scenic <a href=\"https://www.whitefishchamber.org/\" target=\"_blank\" rel=\"noreferrer noopener nofollow\">Whitefish, Montana</a>, InvesTech Research offers a unique “safety-first\" strategy to our readers. Through our proven proprietary models and objective analysis, InvesTech has a 40-year history of accurately predicting market risk – telling investors when to be most bullish and when to become cautious.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research is over 2,200 miles away from Wall Street and we see this distance from main-stream financial industries as a core component of our philosophy and objective methodologies. We love our mountain view and are proud to be “Far From the Madding Crowd,” able to offer our readers the clear, researched, objective market analysis you rely on to inform your investment decisions.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3,\"className\":\"unclear\"} -->\n<h3 class=\"unclear\">A Philosophy Based on Experience</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":5161,\"width\":177,\"height\":236,\"sizeSlug\":\"full\",\"linkDestination\":\"none\",\"className\":\"spotlight-blue\"} -->\n<div class=\"wp-block-image spotlight-blue\"><figure class=\"alignright size-full is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/01/kiplingers-best-2015.jpg\" alt=\"Kiplinger\'s, &quot;The Best List, 2015\" class=\"wp-image-5161\" width=\"177\" height=\"236\"/><figcaption>Rated \"Best Source of Investment Advice\" by Kiplinger’s Personal Finance, 2015</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Formerly a project manager for IBM Research with a number of domestic and international patents to his credit, founder and president Jim Stack has a graduate degree in engineering, with post-graduate study in business. After launching InvesTech Research in 1979, Jim began national circulation of the <em>InvesTech Reseach</em> newsletter<em> </em>in December 1982.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Today, InvesTech publishes the <em>InvesTech Research</em> newsletter, and the <em>Interim Bulletin</em>, which has earned widespread recognition for its time-proven risk allocation strategy, as well as its in-depth analysis of the Federal Reserve. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Learn more about <a href=\"https://ns2020-investech.investech.com/company-philosophy/\">our philosophy</a> here.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Meet the InvesTech Research Team</h2>\n<!-- /wp:heading -->\n\n<!-- wp:group {\"align\":\"wide\",\"className\":\"wide-wrap\"} -->\n<div class=\"wp-block-group alignwide wide-wrap\"><div class=\"wp-block-group__inner-container\"><!-- wp:media-text {\"mediaId\":1745,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/jbs/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/JBS-731x1024.jpg\" alt=\"James Stack, Founder and President, InvesTech Research\" class=\"wp-image-1745 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>James Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>President</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Jim Stack is founder and president of InvesTech Research. Jim is dedicated to helping investors develop an objective, safety-first investment strategy focused on risk management which he provides through his research and writing of the <em>InvesTech Research</em> newsletter.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1713,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/ecp/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/ECP-731x1024.jpg\" alt=\"Eli Petropoulos, Senior Market Analyst, IT\" class=\"wp-image-1713 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Eli Petropoulos</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Senior Market Analyst</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Eli Petropoulos drives idea generation and newsletter content as well as writing for each InvesTech publication. In addition, he is critical to analyzing, maintaining, and interpreting InvesTech’s private financial database and its proprietary indicators.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1748,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/clm/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/CLM-731x1024.jpg\" alt=\"Christina Maloney, Director of Research Services, IT\" class=\"wp-image-1748 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Christina Maloney</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Director of Research Services</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Christina Maloney facilitates and supports daily operations from initial planning to the digital &amp; print publishing stages of the service. She is also highly involved in the newsletter design and website development for the firm.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaPosition\":\"right\",\"mediaId\":1714,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/bjg/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide has-media-on-the-right is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/BJG-732x1024.jpg\" alt=\"Bailey Gage, Subscription Manager, IT\" class=\"wp-image-1714 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Bailey Gage</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Subscription Manager</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Bailey Gage provides the highest level of customer service to InvesTech subscribers with accurate subscription processing and detailed account maintenance. She is also a key participant in research and graphic creation for our publications and marketing materials.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:media-text {\"mediaId\":1747,\"mediaLink\":\"https://ns2020-investech.investech.com/james-stack-team/las-1/\",\"mediaType\":\"image\",\"mediaSizeSlug\":\"large\",\"imageFill\":false,\"className\":\"bio-card\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile bio-card\"><figure class=\"wp-block-media-text__media\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/07/LAS-1-732x1024.jpg\" alt=\"Lisa Stack, CFO, InvesTech Research\" class=\"wp-image-1747 size-large\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:heading {\"level\":3} -->\n<h3>Lisa Stack</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p><strong>Chief Financial Officer</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Lisa Stack participated in growing InvesTech Research in its early years. She is now integral to its financial operations and strategic planning as well as providing leadership to the company’s ongoing vision.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:group -->\n<div class=\"wp-block-group\"><div class=\"wp-block-group__inner-container\"><!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:heading {\"textAlign\":\"center\",\"fontSize\":\"medium\"} -->\n<h2 class=\"has-text-align-center has-medium-font-size\">InvesTech Research has been featured in the following publications:</h2>\n<!-- /wp:heading -->\n\n<!-- wp:block {\"ref\":5175} /-->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/in-the-news/\">Find us In the News</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /--></div></div>\n<!-- /wp:group -->\n\n<!-- wp:block {\"ref\":6293} /-->','About Us','','inherit','closed','closed','','777-revision-v1','','','2021-06-11 22:32:21','2021-06-11 22:32:21','',777,'https://ns2020-investech.investech.com/?p=8357',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8358,3,'2021-06-11 22:33:05','2021-06-11 22:33:05','<!-- wp:heading -->\n<h2>Career Opportunities at InvesTech Research</h2>\n<!-- /wp:heading -->\n\n<!-- wp:media-text {\"mediaId\":7393,\"mediaLink\":\"https://ns2020-investech.investech.com/careers/it-office/\",\"mediaType\":\"image\",\"imageFill\":true,\"className\":\"push-left\"} -->\n<div class=\"wp-block-media-text alignwide is-stacked-on-mobile is-image-fill push-left\"><figure class=\"wp-block-media-text__media\" style=\"background-image:url(https://ns2020-investech.investech.com/wp-content/uploads/2021/04/it-office-1024x612.jpg);background-position:50% 50%\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/04/it-office-1024x612.jpg\" alt=\"\" class=\"wp-image-7393 size-full\"/></figure><div class=\"wp-block-media-text__content\"><!-- wp:paragraph {\"placeholder\":\"Content…\",\"fontSize\":\"medium\"} -->\n<p class=\"has-medium-font-size\">Located far from Wall Street in scenic Whitefish, Montana, InvesTech publishes the <em>InvesTech Research</em> newsletter, which has earned widespread recognition for its time-proven risk allocation strategy. The InvesTech Research team is comprised of professionals who thrive in a high-energy, fast-paced culture of excellence and teamwork.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:media-text -->\n\n<!-- wp:spacer {\"height\":40} -->\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Senior Market Analyst</h3>\n<!-- /wp:heading -->\n\n<!-- wp:separator {\"className\":\"is-style-default\"} -->\n<hr class=\"wp-block-separator is-style-default\"/>\n<!-- /wp:separator -->\n\n<!-- wp:paragraph -->\n<p>We are currently offering a challenging and rewarding career opportunity for the right professional to join our team as a Senior Market Strategist.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:paragraph -->\n<p><strong>Responsibilities Include:</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>Write compelling content that can be leveraged across a variety of media for our subscribers</li><li>Ensure consistency with firm\'s voice, key messages, and editorial style across all communication channels</li><li>Participate in business development, firm presentations, webcasts, and special events</li><li>Monitor and analyze economic releases and other market data</li><li>Contribute to team decisions on portfolio strategy involving equity market research</li><li>Assist in research, analysis, and development of proprietary indicators</li></ul>\n<!-- /wp:list --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:paragraph -->\n<p><strong>Qualifications:</strong></p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list -->\n<ul><li>8+ years of experience in the financial industry with a focus on risk management philosophy</li><li>Possess a proven understanding of and passion for financial markets, economics, and monetary policy</li><li>Exceptional written and oral communication skills</li><li>Bachelors degree in Business, Finance, Economics, or related field</li><li>Chartered Financial Analyst (CFA) or Chartered Market Technician (CMT) designation preferred</li></ul>\n<!-- /wp:list --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button {\"className\":\"is-style-high-impact\"} -->\n<div class=\"wp-block-button is-style-high-impact\"><a class=\"wp-block-button__link\" href=\"/join-investech/\" target=\"_blank\" rel=\"noreferrer noopener\">Join InvesTech</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons -->\n\n<!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:group {\"className\":\"wall-to-wall neutral-warm\"} -->\n<div class=\"wp-block-group wall-to-wall neutral-warm\"><div class=\"wp-block-group__inner-container\"><!-- wp:columns {\"backgroundColor\":\"warm-grey\"} -->\n<div class=\"wp-block-columns has-warm-grey-background-color has-background\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:heading -->\n<h2>Career Opportunities with Stack Financial Management</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Please take a moment to explore opportunities with our sister company Stack Financial Management. SFM is separate and independent of InvesTech Research, yet employs the same safety-first philosophy and technical approach first used by InvesTech Research.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"30%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:30%\"><!-- wp:image {\"id\":6253,\"sizeSlug\":\"large\",\"linkDestination\":\"none\",\"className\":\"multiply\"} -->\n<figure class=\"wp-block-image size-large multiply\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/03/Stack-Logo-CMYK.jpg\" alt=\"\" class=\"wp-image-6253\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:buttons {\"contentJustification\":\"center\"} -->\n<div class=\"wp-block-buttons is-content-justification-center\"><!-- wp:button {\"className\":\"hover: green\"} -->\n<div class=\"wp-block-button hover: green\"><a class=\"wp-block-button__link\" href=\"https://www.stackfinancialmanagement.com/careers/\" target=\"_blank\" rel=\"noreferrer noopener\">Explore Careers</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:spacer {\"height\":30} -->\n<div style=\"height:30px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why Whitefish, Montana?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Living and working in Whitefish is a fantastic opportunity for anyone who loves nature and the outdoors. Our office is located near Big Mountain and Whitefish Mountain Resort, and is just 40 minutes from Glacier National Park. Take a look at what Whitefish living has to offer:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:block {\"ref\":5028} /-->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->','Careers','','inherit','closed','closed','','887-revision-v1','','','2021-06-11 22:33:05','2021-06-11 22:33:05','',887,'https://ns2020-investech.investech.com/?p=8358',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8360,3,'2021-06-11 22:35:48','2021-06-11 22:35:48','<!-- wp:columns {\"verticalAlignment\":\"center\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:heading -->\n<h2>Subscriber Resources and Tools</h2>\n<!-- /wp:heading --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:paragraph -->\n<p>InvesTech financial resources and proprietary tools provide up-to-date information on our market outlook, changes in key indicators, as well as Model Fund Portfolio recommendations.</p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:group {\"className\":\"toolboxed\"} -->\n<div class=\"wp-block-group toolboxed\"><div class=\"wp-block-group__inner-container\"><!-- wp:columns {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-top\"><!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:image {\"id\":4934,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/pub-icon.svg\" alt=\"Publications\" class=\"wp-image-4934\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Publications</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The latest <em>InvesTech Research</em> newsletter published monthly, with both monetary and technical analysis and unique research.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button {\"className\":\"is-style-default\"} -->\n<div class=\"wp-block-button is-style-default\"><a class=\"wp-block-button__link\" href=\"/publications\">Read Publications</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:image {\"id\":5759,\"height\":75,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/02/knight.svg\" alt=\"\" class=\"wp-image-5759\" height=\"75\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>InvesTech Indicators</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Stay ahead of the market with InvesTech\'s proprietary technical indicators.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"/investech-indicators\">Track Indicators</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:image {\"id\":7871,\"width\":100,\"height\":100,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/05/compass-328cc1.svg\" alt=\"\" class=\"wp-image-7871\" width=\"100\" height=\"100\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Market Insights</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Keep current on recent economic news and data releases and how these may affect your investing.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"/library-category/market-insights/\">Follow Insights</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-top\"><!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:image {\"id\":5490,\"height\":75,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/02/mutual-fund-port.svg\" alt=\"\" class=\"wp-image-5490\" height=\"75\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Model Fund Portfolio</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>View the current investment allocation in our Model ETF portfolio and access the latest trades as they happen.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"/model-fund\">View the Portfolio</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:image {\"id\":4931,\"height\":75,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/fin-data-icon.svg\" alt=\"\" class=\"wp-image-4931\" height=\"75\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Daily Data</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Access a wide range of stock market metrics, including market indexes, breadth/volume data, and short-term indicators.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/?page_id=2593\">Get Updates</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:image {\"id\":5760,\"height\":75,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/02/library-1.svg\" alt=\"\" class=\"wp-image-5760\" height=\"75\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Subscriber Library</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Explore our library of Special Reports and past issues on important topics of a timeless and historically significant nature.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button -->\n<div class=\"wp-block-button\"><a class=\"wp-block-button__link\" href=\"/subscriber-library\">Explore Archives</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:paragraph {\"align\":\"center\"} -->\n<p class=\"has-text-align-center\"><strong>We’re here to assist you.</strong><br>Call to our office at <strong><a href=\"tel:4068627777\">406-862-7777</a></strong> (Monday-Friday, 8:30 AM - 5:00PM Mountain Time).</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:spacer {\"height\":50} -->\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:group {\"className\":\"wall-to-wall neutral-warm\"} -->\n<div class=\"wp-block-group wall-to-wall neutral-warm\"><div class=\"wp-block-group__inner-container\"><!-- wp:block {\"ref\":5546} /-->\n\n<!-- wp:columns {\"verticalAlignment\":\"center\",\"className\":\"pad-3-0\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-center pad-3-0\"><!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:66.66%\"><!-- wp:heading -->\n<h2>Make the most of your subscriber access to InvesTech Research and Tools</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research capabilities permit analysis of the Federal Reserve, economy, and stock market that is virtually unparalleled on or off Wall Street. This research and analysis is made available to subscribers through the <em>InvesTech Research</em> newsletter<em>.</em> Each issue of <em>InvesTech Research </em>attempts to answer not just where the market is heading, but why – and also focuses on investment strategy and portfolio allocation, including specific exchange-traded fund (ETF) and mutual fund recommendations.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>We have created a step-by-step guide to using InvesTech’s “safety-first” strategy to enable you to get the most out of your subscription.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Download our <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/pdf_files_wp/Profit-Guide.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">InvesTech Personal Profit Guide (PDF).</a></p>\n<!-- /wp:paragraph --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"center\",\"width\":\"33.33%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-center\" style=\"flex-basis:33.33%\"><!-- wp:paragraph -->\n<p><strong>Share the financial research and insight you trust.</strong> Refer a friend and receive a $20 credit towards your next subscription renewal when they subscribe.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:buttons -->\n<div class=\"wp-block-buttons\"><!-- wp:button {\"className\":\"is-style-high-impact\"} -->\n<div class=\"wp-block-button is-style-high-impact\"><a class=\"wp-block-button__link\" href=\"https://ns2020-investech.investech.com/refer-a-friend/\" target=\"_blank\" rel=\"noreferrer noopener\">Refer a Friend</a></div>\n<!-- /wp:button --></div>\n<!-- /wp:buttons --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns --></div></div>\n<!-- /wp:group -->\n\n<!-- wp:heading -->\n<h2>Explore the Subscriber Library</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Curated articles from our Subscriber Library archive.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:acf/subscriber-content-teaser {\n    \"id\": \"block_604bb05a5584e\",\n    \"name\": \"acf\\/subscriber-content-teaser\",\n    \"data\": {\n        \"post_to_show\": [\n            \"2497\",\n            \"2418\",\n            \"2468\"\n        ],\n        \"_post_to_show\": \"field_5f2aeab7381f9\",\n        \"post_type_to_show\": \"investech-library\",\n        \"_post_type_to_show\": \"field_5f2aec3f2eccd\",\n        \"number_to_show\": \"3\",\n        \"_number_to_show\": \"field_5f2aec6a2ecce\"\n    },\n    \"align\": \"\",\n    \"mode\": \"edit\"\n} /-->\n\n<!-- wp:block {\"ref\":5343} /-->','Subscriber Home Content','','inherit','closed','closed','','6503-revision-v1','','','2021-06-11 22:35:48','2021-06-11 22:35:48','',6503,'https://ns2020-investech.investech.com/?p=8360',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8362,3,'2021-06-14 17:28:11','2021-06-14 17:28:11','<!-- wp:heading -->\n<h2>Managing risk in the final stages of a market cycle</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns.  With a safety-first investment strategy, the first line of defense for protecting assets is to selectively take profits off the table and hold the proceeds in cash. Adjusting stock and sector weightings toward more resilient areas of the market can also fortify a portfolio. When bear market warning flags begin to wave, adding a bear fund can further reduce exposure to downside market movements and lower portfolio volatility.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Bear Fund Fundamentals</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A bear fund is a mutual fund or exchange-traded fund (ETF) designed to increase in value as the market drops. Conversely, the fund will lose value when the market rises. The original bear market mutual funds have been around since the mid-1990s, and several bear fund ETFs following the same principles were incepted just over a decade ago, prior to the last bear market. At InvesTech Research, the primary reason for using a bear fund is as an “insurance policy” to offset potential losses in core holdings of the portfolio during market declines. Our recommendation to add a bear fund to the Model Fund Portfolio has raised some questions from our subscribers. The most frequently asked questions –some simple, some more complex– are addressed below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why use a bear fund instead of selling positions and raising cash?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Increasing cash in the portfolio is an important part of a defensive strategy, but there are several reasons for maintaining select long positions and partially offsetting them with the “insurance policy” of a bear market fund:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Diversification</strong>: Bear fund insurance allows you to hold onto more stocks in a portfolio, thus maintaining greater diversification while counteracting the impact of a stock or sector that doesn’t perform as anticipated.</li><li><strong>Lower portfolio volatility</strong>: Market volatility usually increases as risks rise. A strategy that manages risk is inherently less volatile, and by “neutralizing” a portion of the portfolio, volatility is reduced.</li><li><strong>Dividends</strong>: Dividend payments continue for the positions that are maintained in a portfolio.</li><li><strong>Reduce capital gains tax</strong>: In taxable accounts, selling stocks can create sizeable realized gains. Limiting sales can lessen the tax bite.</li><li><strong>Prepare for the next bull market</strong>: When risks begin to resolve and the time is right to increase market allocation, new additions for the portfolio must be properly vetted prior to purchase. In the meantime, exposure can be quickly increased by removing the bear fund, which “de-neutralizes” a portion of the portfolio to participate in the market recovery without delay.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What do we mean by a “net” long position?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4803,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/ModelPortfolioBarChart.png\" alt=\"InvesTech Model Fund Portfolio Allocation to cash, bear fund, and long funds.\" class=\"wp-image-4803\"/><figcaption>InvesTech Model Fund Portfolio Allocation</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The “net” long position in the Model Fund Portfolio is currently 65%. Fully one-third of the portfolio is not exposed to the downside effects of the market due to the protective cash and inverse index (short) bear fund. But how does this all add up?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As illustrated in the chart at right, current holdings include 73% long funds (blue), 8% short bear fund (red), and 19% cash (yellow). The bear fund effectively “neutralizes” or offsets the impact of an equivalent position of long holdings (shaded blue area). In other words, if the long position moves down, the bear fund moves up and the return on that combination should be negligible for the day. Therefore, the net long position, or overall exposure to the equity market, is the 73% long position minus the 8% short position which is equal to a 65% “net” long position.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why is the ProShares Short S&amp;P 500 ETF (SH) a good choice for the Model Fund Portfolio?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We recommended SH for a number of reasons. Our portfolio holdings are based on S&amp;P 500 sectors, so it’s appropriate to select an inverse index fund correlated to this broad market Index. ProShares Short S&amp;P 500 was incepted in 2006 and has a solid track record through the last bear market. It is the largest and most liquid inverse S&amp;P 500 fund, currently holding over $1.6B in assets. We also like some of the advantages ETFs have over mutual funds such as lower expense ratios and the ability to trade throughout the day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, this fund is passively managed to inversely correlate to the Index’s daily returns. Actively managed funds typically focus on profiting from shorting individual stocks, frequently use resource holdings, and may concentrate on attempts to time the market. Performance can vary depending on the manager’s ability to pick the right stocks to short. Thus, for a safety-first strategy, a more predictable passive fund is the best choice for our purposes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Can you provide a list of bear fund alternatives?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We’ve assembled a list of some of the larger funds that have longer track records, including both ETFs and mutual funds. Before purchasing any on the list below, you should perform your own due diligence to determine the suitability for your portfolio. Reasons for providing these additional choices include:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Some retirement accounts are limited to mutual fund investments only.</li><li>When using a passively managed fund, it’s best to choose one based on an index that most closely matches your portfolio holdings.</li><li>If you are willing to accept the added risk that comes with an actively managed fund, you may want to consider one of the total return alternatives.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4801,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bear_market_funds2.png\" alt=\"alternatives to bear market funds\" class=\"wp-image-4801\"/><figcaption><strong>Bear Market Alternatives</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>If a passive bear fund offsets the market on a daily basis, what happens over a longer period of time?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Due to the compounding of daily returns, performance over periods longer than one day will likely differ from the inverse of the target index. To demonstrate, let’s look at an exaggerated example of how compounding affects returns.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4802,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/SH_SP500_07_10.png\" alt=\"S&amp;P 500 and SH after the stock market peak in October 2007\" class=\"wp-image-4802\"/><figcaption>S&amp;P 500 and SH after the stock market peak in October 2007</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Assume that both ProShares Short S&amp;P 500 (SH) and the S&amp;P 500 start with a value of $100. On Day 1, the S&amp;P 500 loses 10% causing SH to gain 10%. The S&amp;P 500, therefore, ends Day 1 with a price of $90, while SH has grown to $110. If on Day 2 the S&amp;P 500 loses 10% again, its price drops to $81 and SH increases to $121. While achieving perfect correlation on a daily basis, after two days the S&amp;P 500 is down 19% and SH is up 21%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the stock market continues to decline after purchasing a bear fund, gains can be much more than you might expect due to progressively larger dollar changes based on the increasing value of the investment. On the other hand, if the stock market rises persistently after a bear fund is purchased, the daily percentage changes result in progressively smaller dollar changes as the value of the investment decreases. Hence, investors lose less than they might expect when the fund’s return over the course of the rally is calculated.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This point is illustrated in the graphs at right, which show the S&amp;P 500 and SH after the stock market peak in October 2007. Clearly, bear funds can serve as valuable “insurance” in a declining market, even if the position is held past the market bottom. <strong>One important note:</strong> bear fund performance in trendless, volatile markets is less predictable than in markets persistently trending up or down. In fact, due to compounding effects, an inverse index fund may even decline as the market remains flat.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why don’t you use a leveraged bear fund?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A leveraged bear fund is designed to go up two or three times as much as its benchmark goes down on a daily basis. “More” might sound better to the average investor; however, trying to time bear markets or corrections rarely works, and one can easily get burned with leveraged funds if the market doesn\'t move as anticipated and the compounding effect is magnified. With this in mind, we’d avoid the leveraged bear market funds due to the increased volatility and risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Summary: A Safety-first Approach</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bear market funds should be used to neutralize portfolio risk and help you sleep at night – not as a tool for speculative short-term trading. With a safety-first investment strategy, an inverse index fund can serve as an effective, low cost insurance offering an efficient way to offset rising market risk and reduce portfolio volatility. When considering a bear fund, the following guidelines should be helpful:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Use bear funds as an insurance to offset a portion of your portfolio investments.</li><li>Stay with the passively managed bear funds that inversely correlate with the broader indexes.</li><li>Choose the larger more liquid funds with longer track records.</li><li>Gradually implement a bear fund position as a bear market becomes more likely.</li><li>Do not use leveraged funds.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>If bear funds are not an option for your portfolio, the alternative is to reduce your long positions to reach the target “net” allocation and hold the balance in cash.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:paragraph -->\n<p>This report is also available to read in PDF format.&nbsp;<a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.  </p>\n<!-- /wp:paragraph -->','The \"Bare Necessities\" About Bear Funds','Why use a bear fund instead of selling positions and raising cash?Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns. \n','inherit','closed','closed','','2457-revision-v1','','','2021-06-14 17:28:11','2021-06-14 17:28:11','',2457,'https://ns2020-investech.investech.com/?p=8362',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8363,3,'2021-06-14 17:29:06','2021-06-14 17:29:06','','BearFund','','inherit','closed','closed','','bearfund','','','2021-06-14 17:29:06','2021-06-14 17:29:06','',0,'https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf',0,'attachment','application/pdf',0);
INSERT INTO `wp_posts` VALUES (8364,3,'2021-06-14 17:29:48','2021-06-14 17:29:48','<!-- wp:heading -->\n<h2>Managing risk in the final stages of a market cycle</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns.  With a safety-first investment strategy, the first line of defense for protecting assets is to selectively take profits off the table and hold the proceeds in cash. Adjusting stock and sector weightings toward more resilient areas of the market can also fortify a portfolio. When bear market warning flags begin to wave, adding a bear fund can further reduce exposure to downside market movements and lower portfolio volatility.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Bear Fund Fundamentals</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A bear fund is a mutual fund or exchange-traded fund (ETF) designed to increase in value as the market drops. Conversely, the fund will lose value when the market rises. The original bear market mutual funds have been around since the mid-1990s, and several bear fund ETFs following the same principles were incepted just over a decade ago, prior to the last bear market. At InvesTech Research, the primary reason for using a bear fund is as an “insurance policy” to offset potential losses in core holdings of the portfolio during market declines. Our recommendation to add a bear fund to the Model Fund Portfolio has raised some questions from our subscribers. The most frequently asked questions –some simple, some more complex– are addressed below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why use a bear fund instead of selling positions and raising cash?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Increasing cash in the portfolio is an important part of a defensive strategy, but there are several reasons for maintaining select long positions and partially offsetting them with the “insurance policy” of a bear market fund:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Diversification</strong>: Bear fund insurance allows you to hold onto more stocks in a portfolio, thus maintaining greater diversification while counteracting the impact of a stock or sector that doesn’t perform as anticipated.</li><li><strong>Lower portfolio volatility</strong>: Market volatility usually increases as risks rise. A strategy that manages risk is inherently less volatile, and by “neutralizing” a portion of the portfolio, volatility is reduced.</li><li><strong>Dividends</strong>: Dividend payments continue for the positions that are maintained in a portfolio.</li><li><strong>Reduce capital gains tax</strong>: In taxable accounts, selling stocks can create sizeable realized gains. Limiting sales can lessen the tax bite.</li><li><strong>Prepare for the next bull market</strong>: When risks begin to resolve and the time is right to increase market allocation, new additions for the portfolio must be properly vetted prior to purchase. In the meantime, exposure can be quickly increased by removing the bear fund, which “de-neutralizes” a portion of the portfolio to participate in the market recovery without delay.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What do we mean by a “net” long position?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4803,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/ModelPortfolioBarChart.png\" alt=\"InvesTech Model Fund Portfolio Allocation to cash, bear fund, and long funds.\" class=\"wp-image-4803\"/><figcaption>InvesTech Model Fund Portfolio Allocation</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The “net” long position in the Model Fund Portfolio is currently 65%. Fully one-third of the portfolio is not exposed to the downside effects of the market due to the protective cash and inverse index (short) bear fund. But how does this all add up?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As illustrated in the chart at right, current holdings include 73% long funds (blue), 8% short bear fund (red), and 19% cash (yellow). The bear fund effectively “neutralizes” or offsets the impact of an equivalent position of long holdings (shaded blue area). In other words, if the long position moves down, the bear fund moves up and the return on that combination should be negligible for the day. Therefore, the net long position, or overall exposure to the equity market, is the 73% long position minus the 8% short position which is equal to a 65% “net” long position.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why is the ProShares Short S&amp;P 500 ETF (SH) a good choice for the Model Fund Portfolio?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We recommended SH for a number of reasons. Our portfolio holdings are based on S&amp;P 500 sectors, so it’s appropriate to select an inverse index fund correlated to this broad market Index. ProShares Short S&amp;P 500 was incepted in 2006 and has a solid track record through the last bear market. It is the largest and most liquid inverse S&amp;P 500 fund, currently holding over $1.6B in assets. We also like some of the advantages ETFs have over mutual funds such as lower expense ratios and the ability to trade throughout the day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, this fund is passively managed to inversely correlate to the Index’s daily returns. Actively managed funds typically focus on profiting from shorting individual stocks, frequently use resource holdings, and may concentrate on attempts to time the market. Performance can vary depending on the manager’s ability to pick the right stocks to short. Thus, for a safety-first strategy, a more predictable passive fund is the best choice for our purposes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Can you provide a list of bear fund alternatives?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We’ve assembled a list of some of the larger funds that have longer track records, including both ETFs and mutual funds. Before purchasing any on the list below, you should perform your own due diligence to determine the suitability for your portfolio. Reasons for providing these additional choices include:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Some retirement accounts are limited to mutual fund investments only.</li><li>When using a passively managed fund, it’s best to choose one based on an index that most closely matches your portfolio holdings.</li><li>If you are willing to accept the added risk that comes with an actively managed fund, you may want to consider one of the total return alternatives.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4801,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bear_market_funds2.png\" alt=\"alternatives to bear market funds\" class=\"wp-image-4801\"/><figcaption><strong>Bear Market Alternatives</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>If a passive bear fund offsets the market on a daily basis, what happens over a longer period of time?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Due to the compounding of daily returns, performance over periods longer than one day will likely differ from the inverse of the target index. To demonstrate, let’s look at an exaggerated example of how compounding affects returns.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4802,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/SH_SP500_07_10.png\" alt=\"S&amp;P 500 and SH after the stock market peak in October 2007\" class=\"wp-image-4802\"/><figcaption>S&amp;P 500 and SH after the stock market peak in October 2007</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Assume that both ProShares Short S&amp;P 500 (SH) and the S&amp;P 500 start with a value of $100. On Day 1, the S&amp;P 500 loses 10% causing SH to gain 10%. The S&amp;P 500, therefore, ends Day 1 with a price of $90, while SH has grown to $110. If on Day 2 the S&amp;P 500 loses 10% again, its price drops to $81 and SH increases to $121. While achieving perfect correlation on a daily basis, after two days the S&amp;P 500 is down 19% and SH is up 21%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the stock market continues to decline after purchasing a bear fund, gains can be much more than you might expect due to progressively larger dollar changes based on the increasing value of the investment. On the other hand, if the stock market rises persistently after a bear fund is purchased, the daily percentage changes result in progressively smaller dollar changes as the value of the investment decreases. Hence, investors lose less than they might expect when the fund’s return over the course of the rally is calculated.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This point is illustrated in the graphs at right, which show the S&amp;P 500 and SH after the stock market peak in October 2007. Clearly, bear funds can serve as valuable “insurance” in a declining market, even if the position is held past the market bottom. <strong>One important note:</strong> bear fund performance in trendless, volatile markets is less predictable than in markets persistently trending up or down. In fact, due to compounding effects, an inverse index fund may even decline as the market remains flat.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why don’t you use a leveraged bear fund?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A leveraged bear fund is designed to go up two or three times as much as its benchmark goes down on a daily basis. “More” might sound better to the average investor; however, trying to time bear markets or corrections rarely works, and one can easily get burned with leveraged funds if the market doesn\'t move as anticipated and the compounding effect is magnified. With this in mind, we’d avoid the leveraged bear market funds due to the increased volatility and risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Summary: A Safety-first Approach</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bear market funds should be used to neutralize portfolio risk and help you sleep at night – not as a tool for speculative short-term trading. With a safety-first investment strategy, an inverse index fund can serve as an effective, low cost insurance offering an efficient way to offset rising market risk and reduce portfolio volatility. When considering a bear fund, the following guidelines should be helpful:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Use bear funds as an insurance to offset a portion of your portfolio investments.</li><li>Stay with the passively managed bear funds that inversely correlate with the broader indexes.</li><li>Choose the larger more liquid funds with longer track records.</li><li>Gradually implement a bear fund position as a bear market becomes more likely.</li><li>Do not use leveraged funds.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>If bear funds are not an option for your portfolio, the alternative is to reduce your long positions to reach the target “net” allocation and hold the balance in cash.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:paragraph -->\n<p>This report is also available to read in PDF format. <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.  </p>\n<!-- /wp:paragraph -->','The \"Bare Necessities\" About Bear Funds','Why use a bear fund instead of selling positions and raising cash?Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns. \n','inherit','closed','closed','','2457-revision-v1','','','2021-06-14 17:29:48','2021-06-14 17:29:48','',2457,'https://ns2020-investech.investech.com/?p=8364',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8365,3,'2021-06-14 17:33:48','2021-06-14 17:33:48','<!-- wp:block {\"ref\":5238} /-->\n\n<!-- wp:heading -->\n<h2>About Daily Data</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The following data will be updated each business day as it becomes available from our sources.&nbsp; Some entries are preliminary and may not be finalized until the following morning.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Market Indexes</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A market index is a hypothetical portfolio of investment holdings that represents a segment of the financial market. The calculation of the index value comes from the prices of the underlying holdings. Some indexes have values based on market-cap weighting, revenue-weighting, float-weighting, and fundamental-weighting.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:visualizer/chart {\"id\":1979,\"route\":\"renderChart\"} /-->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Breadth/Volume Indicators</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Measures market \"breadth\" or participation. Deteriorating breadth is one of the earliest and most reliable of bear market warning flags. Trend is most important.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:visualizer/chart {\"id\":1986,\"route\":\"chartSelect\"} /-->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Leadership Indicators</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Negative Leadership Composite: Measures internal leadership for evidence of a new bull market - or the danger of an imminent bear market.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:visualizer/chart {\"id\":1998,\"route\":\"chartSelect\"} /-->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Short-Term &amp; Miscellaneous Indicators</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Used to forecast the short-term outlook for the market, which can be useful in improving entry/exit decisions in individual stocks or mutual funds. When at Oversold levels, a rally or upward reversal is very likely within the next few weeks. An Overbought reading indicates the market has climbed too far too fast and is likely to experience a consolidation or correction.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:visualizer/chart {\"id\":2004,\"route\":\"chartSelect\"} /-->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>InvesTech\'s Indicators</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Indicators developed by InvesTech Research that measure developing risk in various parts of the stock market.  Learn more about <a href=\"https://ns2020-investech.investech.com/investech-indicators/\" target=\"_blank\" rel=\"noreferrer noopener\">InvesTech\'s Indicators and monitor LIVE updates</a> here.  </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:visualizer/chart {\"id\":2013,\"route\":\"chartSelect\"} /-->\n\n<!-- wp:spacer {\"height\":25} -->\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Historical Data:</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>InvesTech Research is unable to provide historical data listings other than what is provided on this page.</p>\n<!-- /wp:paragraph -->','Daily Data','','inherit','closed','closed','','2593-revision-v1','','','2021-06-14 17:33:48','2021-06-14 17:33:48','',2593,'https://ns2020-investech.investech.com/?p=8365',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8366,3,'2021-06-14 17:49:01','2021-06-14 17:49:01','<!-- wp:image {\"id\":7366,\"sizeSlug\":\"large\",\"linkDestination\":\"none\",\"className\":\"is-style-default\"} -->\n<figure class=\"wp-block-image size-large is-style-default\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/04/Gorilla-Index.svg\" alt=\"\" class=\"wp-image-7366\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>In the late 1990s, an increasingly fewer number of stocks were responsible for the majority of the gains in the stock market. To capture this phenomenon, we created the Gorilla Index, a group of only 17 stocks that accounted for over 25% of the market-capitalization of the S&amp;P 500. We warned that a breakdown in this group of stocks would be a red flag that a bear market may have begun. This index broke through key support levels in May 2000, just two months after the market peak. <br><br>Today, a similar dynamic has developed, except for <em>even fewer</em> stocks account for an <em>even greater</em> share of the S&amp;P 500\'s market-capitalization. And as was the case in the Tech Bubble, where these stocks go, the rest of the market will undoubtedly follow...</p>\n<!-- /wp:paragraph -->','Gorilla Index','Our InvesTech Gorilla Index tracks the mega-cap momentum stocks that the stock market has become increasingly dependent on for the past 5 years. ','inherit','closed','closed','','3048-revision-v1','','','2021-06-14 17:49:01','2021-06-14 17:49:01','',3048,'https://ns2020-investech.investech.com/?p=8366',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8367,3,'2021-06-14 17:49:44','2021-06-14 17:49:44','<!-- wp:heading -->\n<h2>Measuring the real quality of internal leadership...</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The Negative Leadership Composite (NLC) has served as one of InvesTech Research\'s most reliable tools over our 40-year history for navigating bull and bear markets alike. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"id\":7482,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/05/NLC-3.svg\" alt=\"\" class=\"wp-image-7482\"/></figure>\n<!-- /wp:image -->\n\n<!-- wp:columns {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-top\"></div>\n<!-- /wp:columns -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column {\"width\":\"66.66%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:66.66%\"><!-- wp:group {\"backgroundColor\":\"white\"} -->\n<div class=\"wp-block-group has-white-background-color has-background\"><div class=\"wp-block-group__inner-container\"><!-- wp:heading -->\n<h2>Selling Vacuum</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The top half of our NLC, or what we call the bullish Selling Vacuum, rises as downside leadership evaporates. More often than not, the height <em>and </em>duration of this Selling Vacuum helps to indicate how strong a new bull market is - and how long it will last. For example, the instances when this index has climbed to very strong readings of +60 or +70, it confirmed the onset of a new multi-year bull market. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Distribution</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Obviously, this Negative Leadership Composite doesn\'t provide signals very often. When Distribution (shaded region) is present, it\'s time to be more cautious and carry a higher cash reserve. But when a Selling Vacuum appears (especially after 6+ months of Distribution), it\'s time to take notice and get ready to jump on a charge new bull market in stocks. </p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>The bottom (shaded) half of our NLC, also known as bearish Distribution, measures the rate of acceleration in downside leadership. This is the most vulnerable, dangerous region for the stock market... it is when bear markets can strike.</p>\n<!-- /wp:paragraph --></div></div>\n<!-- /wp:group --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"width\":\"50%\"} -->\n<div class=\"wp-block-column\" style=\"flex-basis:50%\"><!-- wp:spacer {\"height\":62} -->\n<div style=\"height:62px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:visualizer/chart {\"id\":3590,\"route\":\"chartSelect\"} /--></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p></p>\n<!-- /wp:paragraph -->','Negative Leadership Composite','The Negative Leadership Composite (NLC) has served as one of InvesTech Research\'s most reliable tools over our 40-year history for navigating bull and bear markets alike. ','inherit','closed','closed','','2507-revision-v1','','','2021-06-14 17:49:44','2021-06-14 17:49:44','',2507,'https://ns2020-investech.investech.com/?p=8367',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8369,3,'2021-06-14 17:58:07','2021-06-14 17:58:07','<!-- wp:heading {\"level\":6} -->\n<h6>Excerpt from InvesTech Research  - February 12, 2016</h6>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Managing risk in the final stages of a market cycle</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns.  With a safety-first investment strategy, the first line of defense for protecting assets is to selectively take profits off the table and hold the proceeds in cash. Adjusting stock and sector weightings toward more resilient areas of the market can also fortify a portfolio. When bear market warning flags begin to wave, adding a bear fund can further reduce exposure to downside market movements and lower portfolio volatility.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Bear Fund Fundamentals</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A bear fund is a mutual fund or exchange-traded fund (ETF) designed to increase in value as the market drops. Conversely, the fund will lose value when the market rises. The original bear market mutual funds have been around since the mid-1990s, and several bear fund ETFs following the same principles were incepted just over a decade ago, prior to the last bear market. At InvesTech Research, the primary reason for using a bear fund is as an “insurance policy” to offset potential losses in core holdings of the portfolio during market declines. Our recommendation to add a bear fund to the Model Fund Portfolio has raised some questions from our subscribers. The most frequently asked questions –some simple, some more complex– are addressed below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why use a bear fund instead of selling positions and raising cash?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Increasing cash in the portfolio is an important part of a defensive strategy, but there are several reasons for maintaining select long positions and partially offsetting them with the “insurance policy” of a bear market fund:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Diversification</strong>: Bear fund insurance allows you to hold onto more stocks in a portfolio, thus maintaining greater diversification while counteracting the impact of a stock or sector that doesn’t perform as anticipated.</li><li><strong>Lower portfolio volatility</strong>: Market volatility usually increases as risks rise. A strategy that manages risk is inherently less volatile, and by “neutralizing” a portion of the portfolio, volatility is reduced.</li><li><strong>Dividends</strong>: Dividend payments continue for the positions that are maintained in a portfolio.</li><li><strong>Reduce capital gains tax</strong>: In taxable accounts, selling stocks can create sizeable realized gains. Limiting sales can lessen the tax bite.</li><li><strong>Prepare for the next bull market</strong>: When risks begin to resolve and the time is right to increase market allocation, new additions for the portfolio must be properly vetted prior to purchase. In the meantime, exposure can be quickly increased by removing the bear fund, which “de-neutralizes” a portion of the portfolio to participate in the market recovery without delay.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What do we mean by a “net” long position?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4803,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/ModelPortfolioBarChart.png\" alt=\"InvesTech Model Fund Portfolio Allocation to cash, bear fund, and long funds.\" class=\"wp-image-4803\"/><figcaption>InvesTech Model Fund Portfolio Allocation</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The “net” long position in the Model Fund Portfolio is currently 65%. Fully one-third of the portfolio is not exposed to the downside effects of the market due to the protective cash and inverse index (short) bear fund. But how does this all add up?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As illustrated in the chart at right, current holdings include 73% long funds (blue), 8% short bear fund (red), and 19% cash (yellow). The bear fund effectively “neutralizes” or offsets the impact of an equivalent position of long holdings (shaded blue area). In other words, if the long position moves down, the bear fund moves up and the return on that combination should be negligible for the day. Therefore, the net long position, or overall exposure to the equity market, is the 73% long position minus the 8% short position which is equal to a 65% “net” long position.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why is the ProShares Short S&amp;P 500 ETF (SH) a good choice for the Model Fund Portfolio?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We recommended SH for a number of reasons. Our portfolio holdings are based on S&amp;P 500 sectors, so it’s appropriate to select an inverse index fund correlated to this broad market Index. ProShares Short S&amp;P 500 was incepted in 2006 and has a solid track record through the last bear market. It is the largest and most liquid inverse S&amp;P 500 fund, currently holding over $1.6B in assets. We also like some of the advantages ETFs have over mutual funds such as lower expense ratios and the ability to trade throughout the day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, this fund is passively managed to inversely correlate to the Index’s daily returns. Actively managed funds typically focus on profiting from shorting individual stocks, frequently use resource holdings, and may concentrate on attempts to time the market. Performance can vary depending on the manager’s ability to pick the right stocks to short. Thus, for a safety-first strategy, a more predictable passive fund is the best choice for our purposes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Can you provide a list of bear fund alternatives?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We’ve assembled a list of some of the larger funds that have longer track records, including both ETFs and mutual funds. Before purchasing any on the list below, you should perform your own due diligence to determine the suitability for your portfolio. Reasons for providing these additional choices include:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Some retirement accounts are limited to mutual fund investments only.</li><li>When using a passively managed fund, it’s best to choose one based on an index that most closely matches your portfolio holdings.</li><li>If you are willing to accept the added risk that comes with an actively managed fund, you may want to consider one of the total return alternatives.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4801,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bear_market_funds2.png\" alt=\"alternatives to bear market funds\" class=\"wp-image-4801\"/><figcaption><strong>Bear Market Alternatives</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>If a passive bear fund offsets the market on a daily basis, what happens over a longer period of time?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Due to the compounding of daily returns, performance over periods longer than one day will likely differ from the inverse of the target index. To demonstrate, let’s look at an exaggerated example of how compounding affects returns.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4802,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/SH_SP500_07_10.png\" alt=\"S&amp;P 500 and SH after the stock market peak in October 2007\" class=\"wp-image-4802\"/><figcaption>S&amp;P 500 and SH after the stock market peak in October 2007</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Assume that both ProShares Short S&amp;P 500 (SH) and the S&amp;P 500 start with a value of $100. On Day 1, the S&amp;P 500 loses 10% causing SH to gain 10%. The S&amp;P 500, therefore, ends Day 1 with a price of $90, while SH has grown to $110. If on Day 2 the S&amp;P 500 loses 10% again, its price drops to $81 and SH increases to $121. While achieving perfect correlation on a daily basis, after two days the S&amp;P 500 is down 19% and SH is up 21%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the stock market continues to decline after purchasing a bear fund, gains can be much more than you might expect due to progressively larger dollar changes based on the increasing value of the investment. On the other hand, if the stock market rises persistently after a bear fund is purchased, the daily percentage changes result in progressively smaller dollar changes as the value of the investment decreases. Hence, investors lose less than they might expect when the fund’s return over the course of the rally is calculated.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This point is illustrated in the graphs at right, which show the S&amp;P 500 and SH after the stock market peak in October 2007. Clearly, bear funds can serve as valuable “insurance” in a declining market, even if the position is held past the market bottom. <strong>One important note:</strong> bear fund performance in trendless, volatile markets is less predictable than in markets persistently trending up or down. In fact, due to compounding effects, an inverse index fund may even decline as the market remains flat.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why don’t you use a leveraged bear fund?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A leveraged bear fund is designed to go up two or three times as much as its benchmark goes down on a daily basis. “More” might sound better to the average investor; however, trying to time bear markets or corrections rarely works, and one can easily get burned with leveraged funds if the market doesn\'t move as anticipated and the compounding effect is magnified. With this in mind, we’d avoid the leveraged bear market funds due to the increased volatility and risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Summary: A Safety-first Approach</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bear market funds should be used to neutralize portfolio risk and help you sleep at night – not as a tool for speculative short-term trading. With a safety-first investment strategy, an inverse index fund can serve as an effective, low cost insurance offering an efficient way to offset rising market risk and reduce portfolio volatility. When considering a bear fund, the following guidelines should be helpful:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Use bear funds as an insurance to offset a portion of your portfolio investments.</li><li>Stay with the passively managed bear funds that inversely correlate with the broader indexes.</li><li>Choose the larger more liquid funds with longer track records.</li><li>Gradually implement a bear fund position as a bear market becomes more likely.</li><li>Do not use leveraged funds.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>If bear funds are not an option for your portfolio, the alternative is to reduce your long positions to reach the target “net” allocation and hold the balance in cash.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:paragraph -->\n<p>This report is also available to read in PDF format.&nbsp;<a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.  </p>\n<!-- /wp:paragraph -->','The \"Bare Necessities\" About Bear Funds','Why use a bear fund instead of selling positions and raising cash?Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns. \n','inherit','closed','closed','','2457-revision-v1','','','2021-06-14 17:58:07','2021-06-14 17:58:07','',2457,'https://ns2020-investech.investech.com/?p=8369',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8370,3,'2021-06-14 17:58:29','2021-06-14 17:58:29','<!-- wp:heading {\"level\":5} -->\n<h5>Excerpt from InvesTech Research  - February 12, 2016</h5>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Managing risk in the final stages of a market cycle</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns.  With a safety-first investment strategy, the first line of defense for protecting assets is to selectively take profits off the table and hold the proceeds in cash. Adjusting stock and sector weightings toward more resilient areas of the market can also fortify a portfolio. When bear market warning flags begin to wave, adding a bear fund can further reduce exposure to downside market movements and lower portfolio volatility.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Bear Fund Fundamentals</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A bear fund is a mutual fund or exchange-traded fund (ETF) designed to increase in value as the market drops. Conversely, the fund will lose value when the market rises. The original bear market mutual funds have been around since the mid-1990s, and several bear fund ETFs following the same principles were incepted just over a decade ago, prior to the last bear market. At InvesTech Research, the primary reason for using a bear fund is as an “insurance policy” to offset potential losses in core holdings of the portfolio during market declines. Our recommendation to add a bear fund to the Model Fund Portfolio has raised some questions from our subscribers. The most frequently asked questions –some simple, some more complex– are addressed below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why use a bear fund instead of selling positions and raising cash?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Increasing cash in the portfolio is an important part of a defensive strategy, but there are several reasons for maintaining select long positions and partially offsetting them with the “insurance policy” of a bear market fund:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Diversification</strong>: Bear fund insurance allows you to hold onto more stocks in a portfolio, thus maintaining greater diversification while counteracting the impact of a stock or sector that doesn’t perform as anticipated.</li><li><strong>Lower portfolio volatility</strong>: Market volatility usually increases as risks rise. A strategy that manages risk is inherently less volatile, and by “neutralizing” a portion of the portfolio, volatility is reduced.</li><li><strong>Dividends</strong>: Dividend payments continue for the positions that are maintained in a portfolio.</li><li><strong>Reduce capital gains tax</strong>: In taxable accounts, selling stocks can create sizeable realized gains. Limiting sales can lessen the tax bite.</li><li><strong>Prepare for the next bull market</strong>: When risks begin to resolve and the time is right to increase market allocation, new additions for the portfolio must be properly vetted prior to purchase. In the meantime, exposure can be quickly increased by removing the bear fund, which “de-neutralizes” a portion of the portfolio to participate in the market recovery without delay.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What do we mean by a “net” long position?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4803,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/ModelPortfolioBarChart.png\" alt=\"InvesTech Model Fund Portfolio Allocation to cash, bear fund, and long funds.\" class=\"wp-image-4803\"/><figcaption>InvesTech Model Fund Portfolio Allocation</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The “net” long position in the Model Fund Portfolio is currently 65%. Fully one-third of the portfolio is not exposed to the downside effects of the market due to the protective cash and inverse index (short) bear fund. But how does this all add up?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As illustrated in the chart at right, current holdings include 73% long funds (blue), 8% short bear fund (red), and 19% cash (yellow). The bear fund effectively “neutralizes” or offsets the impact of an equivalent position of long holdings (shaded blue area). In other words, if the long position moves down, the bear fund moves up and the return on that combination should be negligible for the day. Therefore, the net long position, or overall exposure to the equity market, is the 73% long position minus the 8% short position which is equal to a 65% “net” long position.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why is the ProShares Short S&amp;P 500 ETF (SH) a good choice for the Model Fund Portfolio?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We recommended SH for a number of reasons. Our portfolio holdings are based on S&amp;P 500 sectors, so it’s appropriate to select an inverse index fund correlated to this broad market Index. ProShares Short S&amp;P 500 was incepted in 2006 and has a solid track record through the last bear market. It is the largest and most liquid inverse S&amp;P 500 fund, currently holding over $1.6B in assets. We also like some of the advantages ETFs have over mutual funds such as lower expense ratios and the ability to trade throughout the day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, this fund is passively managed to inversely correlate to the Index’s daily returns. Actively managed funds typically focus on profiting from shorting individual stocks, frequently use resource holdings, and may concentrate on attempts to time the market. Performance can vary depending on the manager’s ability to pick the right stocks to short. Thus, for a safety-first strategy, a more predictable passive fund is the best choice for our purposes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Can you provide a list of bear fund alternatives?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We’ve assembled a list of some of the larger funds that have longer track records, including both ETFs and mutual funds. Before purchasing any on the list below, you should perform your own due diligence to determine the suitability for your portfolio. Reasons for providing these additional choices include:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Some retirement accounts are limited to mutual fund investments only.</li><li>When using a passively managed fund, it’s best to choose one based on an index that most closely matches your portfolio holdings.</li><li>If you are willing to accept the added risk that comes with an actively managed fund, you may want to consider one of the total return alternatives.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4801,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bear_market_funds2.png\" alt=\"alternatives to bear market funds\" class=\"wp-image-4801\"/><figcaption><strong>Bear Market Alternatives</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>If a passive bear fund offsets the market on a daily basis, what happens over a longer period of time?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Due to the compounding of daily returns, performance over periods longer than one day will likely differ from the inverse of the target index. To demonstrate, let’s look at an exaggerated example of how compounding affects returns.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4802,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/SH_SP500_07_10.png\" alt=\"S&amp;P 500 and SH after the stock market peak in October 2007\" class=\"wp-image-4802\"/><figcaption>S&amp;P 500 and SH after the stock market peak in October 2007</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Assume that both ProShares Short S&amp;P 500 (SH) and the S&amp;P 500 start with a value of $100. On Day 1, the S&amp;P 500 loses 10% causing SH to gain 10%. The S&amp;P 500, therefore, ends Day 1 with a price of $90, while SH has grown to $110. If on Day 2 the S&amp;P 500 loses 10% again, its price drops to $81 and SH increases to $121. While achieving perfect correlation on a daily basis, after two days the S&amp;P 500 is down 19% and SH is up 21%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the stock market continues to decline after purchasing a bear fund, gains can be much more than you might expect due to progressively larger dollar changes based on the increasing value of the investment. On the other hand, if the stock market rises persistently after a bear fund is purchased, the daily percentage changes result in progressively smaller dollar changes as the value of the investment decreases. Hence, investors lose less than they might expect when the fund’s return over the course of the rally is calculated.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This point is illustrated in the graphs at right, which show the S&amp;P 500 and SH after the stock market peak in October 2007. Clearly, bear funds can serve as valuable “insurance” in a declining market, even if the position is held past the market bottom. <strong>One important note:</strong> bear fund performance in trendless, volatile markets is less predictable than in markets persistently trending up or down. In fact, due to compounding effects, an inverse index fund may even decline as the market remains flat.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why don’t you use a leveraged bear fund?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A leveraged bear fund is designed to go up two or three times as much as its benchmark goes down on a daily basis. “More” might sound better to the average investor; however, trying to time bear markets or corrections rarely works, and one can easily get burned with leveraged funds if the market doesn\'t move as anticipated and the compounding effect is magnified. With this in mind, we’d avoid the leveraged bear market funds due to the increased volatility and risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Summary: A Safety-first Approach</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bear market funds should be used to neutralize portfolio risk and help you sleep at night – not as a tool for speculative short-term trading. With a safety-first investment strategy, an inverse index fund can serve as an effective, low cost insurance offering an efficient way to offset rising market risk and reduce portfolio volatility. When considering a bear fund, the following guidelines should be helpful:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Use bear funds as an insurance to offset a portion of your portfolio investments.</li><li>Stay with the passively managed bear funds that inversely correlate with the broader indexes.</li><li>Choose the larger more liquid funds with longer track records.</li><li>Gradually implement a bear fund position as a bear market becomes more likely.</li><li>Do not use leveraged funds.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>If bear funds are not an option for your portfolio, the alternative is to reduce your long positions to reach the target “net” allocation and hold the balance in cash.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:paragraph -->\n<p>This report is also available to read in PDF format.&nbsp;<a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.  </p>\n<!-- /wp:paragraph -->','The \"Bare Necessities\" About Bear Funds','Why use a bear fund instead of selling positions and raising cash?Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns. \n','inherit','closed','closed','','2457-revision-v1','','','2021-06-14 17:58:29','2021-06-14 17:58:29','',2457,'https://ns2020-investech.investech.com/?p=8370',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8371,3,'2021-06-14 17:58:45','2021-06-14 17:58:45','<!-- wp:heading {\"level\":4} -->\n<h4>Excerpt from InvesTech Research  - February 12, 2016</h4>\n<!-- /wp:heading -->\n\n<!-- wp:heading -->\n<h2>Managing risk in the final stages of a market cycle</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns.  With a safety-first investment strategy, the first line of defense for protecting assets is to selectively take profits off the table and hold the proceeds in cash. Adjusting stock and sector weightings toward more resilient areas of the market can also fortify a portfolio. When bear market warning flags begin to wave, adding a bear fund can further reduce exposure to downside market movements and lower portfolio volatility.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Bear Fund Fundamentals</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A bear fund is a mutual fund or exchange-traded fund (ETF) designed to increase in value as the market drops. Conversely, the fund will lose value when the market rises. The original bear market mutual funds have been around since the mid-1990s, and several bear fund ETFs following the same principles were incepted just over a decade ago, prior to the last bear market. At InvesTech Research, the primary reason for using a bear fund is as an “insurance policy” to offset potential losses in core holdings of the portfolio during market declines. Our recommendation to add a bear fund to the Model Fund Portfolio has raised some questions from our subscribers. The most frequently asked questions –some simple, some more complex– are addressed below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why use a bear fund instead of selling positions and raising cash?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Increasing cash in the portfolio is an important part of a defensive strategy, but there are several reasons for maintaining select long positions and partially offsetting them with the “insurance policy” of a bear market fund:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Diversification</strong>: Bear fund insurance allows you to hold onto more stocks in a portfolio, thus maintaining greater diversification while counteracting the impact of a stock or sector that doesn’t perform as anticipated.</li><li><strong>Lower portfolio volatility</strong>: Market volatility usually increases as risks rise. A strategy that manages risk is inherently less volatile, and by “neutralizing” a portion of the portfolio, volatility is reduced.</li><li><strong>Dividends</strong>: Dividend payments continue for the positions that are maintained in a portfolio.</li><li><strong>Reduce capital gains tax</strong>: In taxable accounts, selling stocks can create sizeable realized gains. Limiting sales can lessen the tax bite.</li><li><strong>Prepare for the next bull market</strong>: When risks begin to resolve and the time is right to increase market allocation, new additions for the portfolio must be properly vetted prior to purchase. In the meantime, exposure can be quickly increased by removing the bear fund, which “de-neutralizes” a portion of the portfolio to participate in the market recovery without delay.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What do we mean by a “net” long position?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4803,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/ModelPortfolioBarChart.png\" alt=\"InvesTech Model Fund Portfolio Allocation to cash, bear fund, and long funds.\" class=\"wp-image-4803\"/><figcaption>InvesTech Model Fund Portfolio Allocation</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The “net” long position in the Model Fund Portfolio is currently 65%. Fully one-third of the portfolio is not exposed to the downside effects of the market due to the protective cash and inverse index (short) bear fund. But how does this all add up?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As illustrated in the chart at right, current holdings include 73% long funds (blue), 8% short bear fund (red), and 19% cash (yellow). The bear fund effectively “neutralizes” or offsets the impact of an equivalent position of long holdings (shaded blue area). In other words, if the long position moves down, the bear fund moves up and the return on that combination should be negligible for the day. Therefore, the net long position, or overall exposure to the equity market, is the 73% long position minus the 8% short position which is equal to a 65% “net” long position.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why is the ProShares Short S&amp;P 500 ETF (SH) a good choice for the Model Fund Portfolio?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We recommended SH for a number of reasons. Our portfolio holdings are based on S&amp;P 500 sectors, so it’s appropriate to select an inverse index fund correlated to this broad market Index. ProShares Short S&amp;P 500 was incepted in 2006 and has a solid track record through the last bear market. It is the largest and most liquid inverse S&amp;P 500 fund, currently holding over $1.6B in assets. We also like some of the advantages ETFs have over mutual funds such as lower expense ratios and the ability to trade throughout the day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, this fund is passively managed to inversely correlate to the Index’s daily returns. Actively managed funds typically focus on profiting from shorting individual stocks, frequently use resource holdings, and may concentrate on attempts to time the market. Performance can vary depending on the manager’s ability to pick the right stocks to short. Thus, for a safety-first strategy, a more predictable passive fund is the best choice for our purposes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Can you provide a list of bear fund alternatives?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We’ve assembled a list of some of the larger funds that have longer track records, including both ETFs and mutual funds. Before purchasing any on the list below, you should perform your own due diligence to determine the suitability for your portfolio. Reasons for providing these additional choices include:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Some retirement accounts are limited to mutual fund investments only.</li><li>When using a passively managed fund, it’s best to choose one based on an index that most closely matches your portfolio holdings.</li><li>If you are willing to accept the added risk that comes with an actively managed fund, you may want to consider one of the total return alternatives.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4801,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bear_market_funds2.png\" alt=\"alternatives to bear market funds\" class=\"wp-image-4801\"/><figcaption><strong>Bear Market Alternatives</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>If a passive bear fund offsets the market on a daily basis, what happens over a longer period of time?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Due to the compounding of daily returns, performance over periods longer than one day will likely differ from the inverse of the target index. To demonstrate, let’s look at an exaggerated example of how compounding affects returns.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4802,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/SH_SP500_07_10.png\" alt=\"S&amp;P 500 and SH after the stock market peak in October 2007\" class=\"wp-image-4802\"/><figcaption>S&amp;P 500 and SH after the stock market peak in October 2007</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Assume that both ProShares Short S&amp;P 500 (SH) and the S&amp;P 500 start with a value of $100. On Day 1, the S&amp;P 500 loses 10% causing SH to gain 10%. The S&amp;P 500, therefore, ends Day 1 with a price of $90, while SH has grown to $110. If on Day 2 the S&amp;P 500 loses 10% again, its price drops to $81 and SH increases to $121. While achieving perfect correlation on a daily basis, after two days the S&amp;P 500 is down 19% and SH is up 21%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the stock market continues to decline after purchasing a bear fund, gains can be much more than you might expect due to progressively larger dollar changes based on the increasing value of the investment. On the other hand, if the stock market rises persistently after a bear fund is purchased, the daily percentage changes result in progressively smaller dollar changes as the value of the investment decreases. Hence, investors lose less than they might expect when the fund’s return over the course of the rally is calculated.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This point is illustrated in the graphs at right, which show the S&amp;P 500 and SH after the stock market peak in October 2007. Clearly, bear funds can serve as valuable “insurance” in a declining market, even if the position is held past the market bottom. <strong>One important note:</strong> bear fund performance in trendless, volatile markets is less predictable than in markets persistently trending up or down. In fact, due to compounding effects, an inverse index fund may even decline as the market remains flat.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why don’t you use a leveraged bear fund?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A leveraged bear fund is designed to go up two or three times as much as its benchmark goes down on a daily basis. “More” might sound better to the average investor; however, trying to time bear markets or corrections rarely works, and one can easily get burned with leveraged funds if the market doesn\'t move as anticipated and the compounding effect is magnified. With this in mind, we’d avoid the leveraged bear market funds due to the increased volatility and risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Summary: A Safety-first Approach</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bear market funds should be used to neutralize portfolio risk and help you sleep at night – not as a tool for speculative short-term trading. With a safety-first investment strategy, an inverse index fund can serve as an effective, low cost insurance offering an efficient way to offset rising market risk and reduce portfolio volatility. When considering a bear fund, the following guidelines should be helpful:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Use bear funds as an insurance to offset a portion of your portfolio investments.</li><li>Stay with the passively managed bear funds that inversely correlate with the broader indexes.</li><li>Choose the larger more liquid funds with longer track records.</li><li>Gradually implement a bear fund position as a bear market becomes more likely.</li><li>Do not use leveraged funds.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>If bear funds are not an option for your portfolio, the alternative is to reduce your long positions to reach the target “net” allocation and hold the balance in cash.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:paragraph -->\n<p>This report is also available to read in PDF format.&nbsp;<a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.  </p>\n<!-- /wp:paragraph -->','The \"Bare Necessities\" About Bear Funds','Why use a bear fund instead of selling positions and raising cash?Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns. \n','inherit','closed','closed','','2457-revision-v1','','','2021-06-14 17:58:45','2021-06-14 17:58:45','',2457,'https://ns2020-investech.investech.com/?p=8371',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8372,3,'2021-06-14 17:59:33','2021-06-14 17:59:33','<!-- wp:heading -->\n<h2>Managing risk in the final stages of a market cycle</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns.  With a safety-first investment strategy, the first line of defense for protecting assets is to selectively take profits off the table and hold the proceeds in cash. Adjusting stock and sector weightings toward more resilient areas of the market can also fortify a portfolio. When bear market warning flags begin to wave, adding a bear fund can further reduce exposure to downside market movements and lower portfolio volatility.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Bear Fund Fundamentals</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A bear fund is a mutual fund or exchange-traded fund (ETF) designed to increase in value as the market drops. Conversely, the fund will lose value when the market rises. The original bear market mutual funds have been around since the mid-1990s, and several bear fund ETFs following the same principles were incepted just over a decade ago, prior to the last bear market. At InvesTech Research, the primary reason for using a bear fund is as an “insurance policy” to offset potential losses in core holdings of the portfolio during market declines. Our recommendation to add a bear fund to the Model Fund Portfolio has raised some questions from our subscribers. The most frequently asked questions –some simple, some more complex– are addressed below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why use a bear fund instead of selling positions and raising cash?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Increasing cash in the portfolio is an important part of a defensive strategy, but there are several reasons for maintaining select long positions and partially offsetting them with the “insurance policy” of a bear market fund:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Diversification</strong>: Bear fund insurance allows you to hold onto more stocks in a portfolio, thus maintaining greater diversification while counteracting the impact of a stock or sector that doesn’t perform as anticipated.</li><li><strong>Lower portfolio volatility</strong>: Market volatility usually increases as risks rise. A strategy that manages risk is inherently less volatile, and by “neutralizing” a portion of the portfolio, volatility is reduced.</li><li><strong>Dividends</strong>: Dividend payments continue for the positions that are maintained in a portfolio.</li><li><strong>Reduce capital gains tax</strong>: In taxable accounts, selling stocks can create sizeable realized gains. Limiting sales can lessen the tax bite.</li><li><strong>Prepare for the next bull market</strong>: When risks begin to resolve and the time is right to increase market allocation, new additions for the portfolio must be properly vetted prior to purchase. In the meantime, exposure can be quickly increased by removing the bear fund, which “de-neutralizes” a portion of the portfolio to participate in the market recovery without delay.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What do we mean by a “net” long position?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4803,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/ModelPortfolioBarChart.png\" alt=\"InvesTech Model Fund Portfolio Allocation to cash, bear fund, and long funds.\" class=\"wp-image-4803\"/><figcaption>InvesTech Model Fund Portfolio Allocation</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The “net” long position in the Model Fund Portfolio is currently 65%. Fully one-third of the portfolio is not exposed to the downside effects of the market due to the protective cash and inverse index (short) bear fund. But how does this all add up?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As illustrated in the chart at right, current holdings include 73% long funds (blue), 8% short bear fund (red), and 19% cash (yellow). The bear fund effectively “neutralizes” or offsets the impact of an equivalent position of long holdings (shaded blue area). In other words, if the long position moves down, the bear fund moves up and the return on that combination should be negligible for the day. Therefore, the net long position, or overall exposure to the equity market, is the 73% long position minus the 8% short position which is equal to a 65% “net” long position.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why is the ProShares Short S&amp;P 500 ETF (SH) a good choice for the Model Fund Portfolio?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We recommended SH for a number of reasons. Our portfolio holdings are based on S&amp;P 500 sectors, so it’s appropriate to select an inverse index fund correlated to this broad market Index. ProShares Short S&amp;P 500 was incepted in 2006 and has a solid track record through the last bear market. It is the largest and most liquid inverse S&amp;P 500 fund, currently holding over $1.6B in assets. We also like some of the advantages ETFs have over mutual funds such as lower expense ratios and the ability to trade throughout the day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, this fund is passively managed to inversely correlate to the Index’s daily returns. Actively managed funds typically focus on profiting from shorting individual stocks, frequently use resource holdings, and may concentrate on attempts to time the market. Performance can vary depending on the manager’s ability to pick the right stocks to short. Thus, for a safety-first strategy, a more predictable passive fund is the best choice for our purposes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Can you provide a list of bear fund alternatives?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We’ve assembled a list of some of the larger funds that have longer track records, including both ETFs and mutual funds. Before purchasing any on the list below, you should perform your own due diligence to determine the suitability for your portfolio. Reasons for providing these additional choices include:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Some retirement accounts are limited to mutual fund investments only.</li><li>When using a passively managed fund, it’s best to choose one based on an index that most closely matches your portfolio holdings.</li><li>If you are willing to accept the added risk that comes with an actively managed fund, you may want to consider one of the total return alternatives.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4801,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bear_market_funds2.png\" alt=\"alternatives to bear market funds\" class=\"wp-image-4801\"/><figcaption><strong>Bear Market Alternatives</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>If a passive bear fund offsets the market on a daily basis, what happens over a longer period of time?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Due to the compounding of daily returns, performance over periods longer than one day will likely differ from the inverse of the target index. To demonstrate, let’s look at an exaggerated example of how compounding affects returns.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4802,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/SH_SP500_07_10.png\" alt=\"S&amp;P 500 and SH after the stock market peak in October 2007\" class=\"wp-image-4802\"/><figcaption>S&amp;P 500 and SH after the stock market peak in October 2007</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Assume that both ProShares Short S&amp;P 500 (SH) and the S&amp;P 500 start with a value of $100. On Day 1, the S&amp;P 500 loses 10% causing SH to gain 10%. The S&amp;P 500, therefore, ends Day 1 with a price of $90, while SH has grown to $110. If on Day 2 the S&amp;P 500 loses 10% again, its price drops to $81 and SH increases to $121. While achieving perfect correlation on a daily basis, after two days the S&amp;P 500 is down 19% and SH is up 21%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the stock market continues to decline after purchasing a bear fund, gains can be much more than you might expect due to progressively larger dollar changes based on the increasing value of the investment. On the other hand, if the stock market rises persistently after a bear fund is purchased, the daily percentage changes result in progressively smaller dollar changes as the value of the investment decreases. Hence, investors lose less than they might expect when the fund’s return over the course of the rally is calculated.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This point is illustrated in the graphs at right, which show the S&amp;P 500 and SH after the stock market peak in October 2007. Clearly, bear funds can serve as valuable “insurance” in a declining market, even if the position is held past the market bottom. <strong>One important note:</strong> bear fund performance in trendless, volatile markets is less predictable than in markets persistently trending up or down. In fact, due to compounding effects, an inverse index fund may even decline as the market remains flat.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why don’t you use a leveraged bear fund?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A leveraged bear fund is designed to go up two or three times as much as its benchmark goes down on a daily basis. “More” might sound better to the average investor; however, trying to time bear markets or corrections rarely works, and one can easily get burned with leveraged funds if the market doesn\'t move as anticipated and the compounding effect is magnified. With this in mind, we’d avoid the leveraged bear market funds due to the increased volatility and risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Summary: A Safety-first Approach</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bear market funds should be used to neutralize portfolio risk and help you sleep at night – not as a tool for speculative short-term trading. With a safety-first investment strategy, an inverse index fund can serve as an effective, low cost insurance offering an efficient way to offset rising market risk and reduce portfolio volatility. When considering a bear fund, the following guidelines should be helpful:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Use bear funds as an insurance to offset a portion of your portfolio investments.</li><li>Stay with the passively managed bear funds that inversely correlate with the broader indexes.</li><li>Choose the larger more liquid funds with longer track records.</li><li>Gradually implement a bear fund position as a bear market becomes more likely.</li><li>Do not use leveraged funds.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>If bear funds are not an option for your portfolio, the alternative is to reduce your long positions to reach the target “net” allocation and hold the balance in cash.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Excerpt from InvesTech Research  - February 12, 2016</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>This report is also available to read in PDF format.&nbsp;<a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.  </p>\n<!-- /wp:paragraph -->','The \"Bare Necessities\" About Bear Funds','Why use a bear fund instead of selling positions and raising cash?Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns. \n','inherit','closed','closed','','2457-revision-v1','','','2021-06-14 17:59:33','2021-06-14 17:59:33','',2457,'https://ns2020-investech.investech.com/?p=8372',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8373,3,'2021-06-14 17:59:57','2021-06-14 17:59:57','<!-- wp:heading -->\n<h2>Managing risk in the final stages of a market cycle</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns.  With a safety-first investment strategy, the first line of defense for protecting assets is to selectively take profits off the table and hold the proceeds in cash. Adjusting stock and sector weightings toward more resilient areas of the market can also fortify a portfolio. When bear market warning flags begin to wave, adding a bear fund can further reduce exposure to downside market movements and lower portfolio volatility.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Bear Fund Fundamentals</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A bear fund is a mutual fund or exchange-traded fund (ETF) designed to increase in value as the market drops. Conversely, the fund will lose value when the market rises. The original bear market mutual funds have been around since the mid-1990s, and several bear fund ETFs following the same principles were incepted just over a decade ago, prior to the last bear market. At InvesTech Research, the primary reason for using a bear fund is as an “insurance policy” to offset potential losses in core holdings of the portfolio during market declines. Our recommendation to add a bear fund to the Model Fund Portfolio has raised some questions from our subscribers. The most frequently asked questions –some simple, some more complex– are addressed below.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why use a bear fund instead of selling positions and raising cash?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Increasing cash in the portfolio is an important part of a defensive strategy, but there are several reasons for maintaining select long positions and partially offsetting them with the “insurance policy” of a bear market fund:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Diversification</strong>: Bear fund insurance allows you to hold onto more stocks in a portfolio, thus maintaining greater diversification while counteracting the impact of a stock or sector that doesn’t perform as anticipated.</li><li><strong>Lower portfolio volatility</strong>: Market volatility usually increases as risks rise. A strategy that manages risk is inherently less volatile, and by “neutralizing” a portion of the portfolio, volatility is reduced.</li><li><strong>Dividends</strong>: Dividend payments continue for the positions that are maintained in a portfolio.</li><li><strong>Reduce capital gains tax</strong>: In taxable accounts, selling stocks can create sizeable realized gains. Limiting sales can lessen the tax bite.</li><li><strong>Prepare for the next bull market</strong>: When risks begin to resolve and the time is right to increase market allocation, new additions for the portfolio must be properly vetted prior to purchase. In the meantime, exposure can be quickly increased by removing the bear fund, which “de-neutralizes” a portion of the portfolio to participate in the market recovery without delay.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>What do we mean by a “net” long position?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4803,\"sizeSlug\":\"full\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-full\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/ModelPortfolioBarChart.png\" alt=\"InvesTech Model Fund Portfolio Allocation to cash, bear fund, and long funds.\" class=\"wp-image-4803\"/><figcaption>InvesTech Model Fund Portfolio Allocation</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>The “net” long position in the Model Fund Portfolio is currently 65%. Fully one-third of the portfolio is not exposed to the downside effects of the market due to the protective cash and inverse index (short) bear fund. But how does this all add up?</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>As illustrated in the chart at right, current holdings include 73% long funds (blue), 8% short bear fund (red), and 19% cash (yellow). The bear fund effectively “neutralizes” or offsets the impact of an equivalent position of long holdings (shaded blue area). In other words, if the long position moves down, the bear fund moves up and the return on that combination should be negligible for the day. Therefore, the net long position, or overall exposure to the equity market, is the 73% long position minus the 8% short position which is equal to a 65% “net” long position.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why is the ProShares Short S&amp;P 500 ETF (SH) a good choice for the Model Fund Portfolio?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We recommended SH for a number of reasons. Our portfolio holdings are based on S&amp;P 500 sectors, so it’s appropriate to select an inverse index fund correlated to this broad market Index. ProShares Short S&amp;P 500 was incepted in 2006 and has a solid track record through the last bear market. It is the largest and most liquid inverse S&amp;P 500 fund, currently holding over $1.6B in assets. We also like some of the advantages ETFs have over mutual funds such as lower expense ratios and the ability to trade throughout the day.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Finally, this fund is passively managed to inversely correlate to the Index’s daily returns. Actively managed funds typically focus on profiting from shorting individual stocks, frequently use resource holdings, and may concentrate on attempts to time the market. Performance can vary depending on the manager’s ability to pick the right stocks to short. Thus, for a safety-first strategy, a more predictable passive fund is the best choice for our purposes.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Can you provide a list of bear fund alternatives?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>We’ve assembled a list of some of the larger funds that have longer track records, including both ETFs and mutual funds. Before purchasing any on the list below, you should perform your own due diligence to determine the suitability for your portfolio. Reasons for providing these additional choices include:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Some retirement accounts are limited to mutual fund investments only.</li><li>When using a passively managed fund, it’s best to choose one based on an index that most closely matches your portfolio holdings.</li><li>If you are willing to accept the added risk that comes with an actively managed fund, you may want to consider one of the total return alternatives.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":4801,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bear_market_funds2.png\" alt=\"alternatives to bear market funds\" class=\"wp-image-4801\"/><figcaption><strong>Bear Market Alternatives</strong></figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>If a passive bear fund offsets the market on a daily basis, what happens over a longer period of time?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Due to the compounding of daily returns, performance over periods longer than one day will likely differ from the inverse of the target index. To demonstrate, let’s look at an exaggerated example of how compounding affects returns.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4802,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/SH_SP500_07_10.png\" alt=\"S&amp;P 500 and SH after the stock market peak in October 2007\" class=\"wp-image-4802\"/><figcaption>S&amp;P 500 and SH after the stock market peak in October 2007</figcaption></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Assume that both ProShares Short S&amp;P 500 (SH) and the S&amp;P 500 start with a value of $100. On Day 1, the S&amp;P 500 loses 10% causing SH to gain 10%. The S&amp;P 500, therefore, ends Day 1 with a price of $90, while SH has grown to $110. If on Day 2 the S&amp;P 500 loses 10% again, its price drops to $81 and SH increases to $121. While achieving perfect correlation on a daily basis, after two days the S&amp;P 500 is down 19% and SH is up 21%.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>If the stock market continues to decline after purchasing a bear fund, gains can be much more than you might expect due to progressively larger dollar changes based on the increasing value of the investment. On the other hand, if the stock market rises persistently after a bear fund is purchased, the daily percentage changes result in progressively smaller dollar changes as the value of the investment decreases. Hence, investors lose less than they might expect when the fund’s return over the course of the rally is calculated.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>This point is illustrated in the graphs at right, which show the S&amp;P 500 and SH after the stock market peak in October 2007. Clearly, bear funds can serve as valuable “insurance” in a declining market, even if the position is held past the market bottom. <strong>One important note:</strong> bear fund performance in trendless, volatile markets is less predictable than in markets persistently trending up or down. In fact, due to compounding effects, an inverse index fund may even decline as the market remains flat.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Why don’t you use a leveraged bear fund?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>A leveraged bear fund is designed to go up two or three times as much as its benchmark goes down on a daily basis. “More” might sound better to the average investor; however, trying to time bear markets or corrections rarely works, and one can easily get burned with leveraged funds if the market doesn\'t move as anticipated and the compounding effect is magnified. With this in mind, we’d avoid the leveraged bear market funds due to the increased volatility and risk.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading -->\n<h2>Summary: A Safety-first Approach</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bear market funds should be used to neutralize portfolio risk and help you sleep at night – not as a tool for speculative short-term trading. With a safety-first investment strategy, an inverse index fund can serve as an effective, low cost insurance offering an efficient way to offset rising market risk and reduce portfolio volatility. When considering a bear fund, the following guidelines should be helpful:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li>Use bear funds as an insurance to offset a portion of your portfolio investments.</li><li>Stay with the passively managed bear funds that inversely correlate with the broader indexes.</li><li>Choose the larger more liquid funds with longer track records.</li><li>Gradually implement a bear fund position as a bear market becomes more likely.</li><li>Do not use leveraged funds.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>If bear funds are not an option for your portfolio, the alternative is to reduce your long positions to reach the target “net” allocation and hold the balance in cash.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator -->\n<hr class=\"wp-block-separator\"/>\n<!-- /wp:separator -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Excerpt from <em>InvesTech Research</em>  - February 12, 2016</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>This report is also available to read in PDF format.&nbsp;<a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/BearFund.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.  </p>\n<!-- /wp:paragraph -->','The \"Bare Necessities\" About Bear Funds','Why use a bear fund instead of selling positions and raising cash?Managing risk in the final stages of a market cycle is vitally important for preserving capital and generating superior long-term investment returns. \n','inherit','closed','closed','','2457-revision-v1','','','2021-06-14 17:59:57','2021-06-14 17:59:57','',2457,'https://ns2020-investech.investech.com/?p=8373',0,'revision','',0);
INSERT INTO `wp_posts` VALUES (8374,3,'2021-06-14 18:01:01','2021-06-14 18:01:01','<!-- wp:spacer {\"height\":8} -->\n<div style=\"height:8px\" aria-hidden=\"true\" class=\"wp-block-spacer\"></div>\n<!-- /wp:spacer -->\n\n<!-- wp:heading -->\n<h2>Holland, 1636</h2>\n<!-- /wp:heading -->\n\n<!-- wp:columns {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-top\"><!-- wp:column {\"verticalAlignment\":\"top\",\"width\":\"60%\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\" style=\"flex-basis:60%\"><!-- wp:quote -->\n<blockquote class=\"wp-block-quote\"><p>One would suppose that there must have been some great virtue in this flower to have made it so valuable in the eyes of so prudent a people as the Dutch; but it has neither the beauty nor the perfume of the rose – hardly the beauty of the ‘sweet, sweet-pea;’ neither is it as enduring as either…\"</p><p>\"At last, however, the more prudent began to see that this folly could not last for ever… It was seen that somebody must lose fearfully in the end. As this conviction spread, prices fell, and never rose again. Confidence was destroyed, and a universal panic seized upon the dealers.\"</p><cite>– Tulipomania, Holland, 1636, excerpted from Extraordinary Popular Delusions &amp; the Madness of Crowds, written by Charles Mackay 1841</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:image {\"id\":4887,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<figure class=\"wp-block-image size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Jan_Brueghel_the_Younger_Satire_Tulip_Mania_1640-1024x655.jpg\" alt=\"Painting, A Satire of Tulip Mania by Jan Brueghel, c. 1640\" class=\"wp-image-4887\"/><figcaption>A Satire of Tulip Mania by Jan Brueghel the Younger (ca. 1640) depicts speculators as brainless monkeys in contemporary upper-class dress.</figcaption></figure>\n<!-- /wp:image --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:heading -->\n<h2>Fast forward to 2017: Cryptocurrency Markets</h2>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>The quotes above referring to the Tulipomania of the 1600s may seem bizarre and distant to many. However, we see striking similarities between the investor psychology that once surrounded those antiquated tulip bulbs and that which is driving the current mania in cryptocurrencies, particularly Bitcoin:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-columns are-vertically-aligned-top\"><!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p>Wealth Managers Are Being Inundated With Calls About Bitcoin</p><cite>Bloomberg, 11/21/17</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p>Someone in 2010 bought 2 pizzas with 10,000 bitcoins – which today would be worth $100 million</p><cite>Business Insider, 11/28/17</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p>Owning bitcoin is so much damn fun</p><cite>Yahoo! Finance, 11/30/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column {\"verticalAlignment\":\"top\"} -->\n<div class=\"wp-block-column is-vertically-aligned-top\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p>Bitcoin swings from bull to bear and back in a day </p><cite>Financial Times, 11/30/17</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p>Bitcoin’s Wildest Ride: Up 40% in 40 Hours </p><cite>Wall Street Journal, 12/7/17</cite></blockquote>\n<!-- /wp:quote -->\n\n<!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p>Bitcoin Futures Debut With 26% Rally, Trigger CBOE Trading Halts</p><cite>Bloomberg, 12/11/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Bitcoin and the Lure of Decentralization</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Bitcoin is the most widely-recognized and largest cryptocurrency by market capitalization. Specifically, a cryptocurrency is a digital currency which has no central issuing or regulating authority, but instead uses a decentralized system of computers to record transactions and manage the issuance of new units. The digital asset relies on cryptography to prevent counterfeiting and fraudulent transactions. While over 1,000 unique cryptocurrencies exist today, they all share a common purpose: to enable and serve decentralized applications – a way to create a self-supporting service that no single entity operates or regulates.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Way of the future? It’s complicated…</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Cryptocurrencies may sound like the way of the future, but they are incredibly complex and difficult to understand. To illustrate, let’s take a high-level look at a theoretical transaction paid for in Bitcoin, as depicted by the flow chart at the below. Once the transaction is proposed, independent entities (called “miners”) compete on the open network to time stamp and verify the transaction by performing computationally difficult calculations. The reward for winning the elaborate race to verify and add the transaction to the public digital ledger (the blockchain) is a fraction of the transaction’s value, plus a processing fee, both denominated in Bitcoin. The integrity of the ledger is upheld by the economic self-interest of the miners – pure, unadulterated capitalism.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:image {\"align\":\"center\",\"id\":8307,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\n<div class=\"wp-block-image\"><figure class=\"aligncenter size-large\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2021/06/bitcoinflowchart.jpg\" alt=\"\" class=\"wp-image-8307\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Bitcoin vs. Internet Bubble</h3>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"right\",\"id\":4739,\"width\":352,\"height\":416,\"sizeSlug\":\"large\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignright size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bitcoin-1.png\" alt=\"Bitcoin vs. the Internet Bubble chart via Yahoo! Finance\" class=\"wp-image-4739\" width=\"352\" height=\"416\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Although Bitcoin has been in existence since 2009, its ascension to mainstream relevance is far more recent. Originally beloved by a very small group of passionate believers, Bitcoin saw relatively steady price appreciation in its early years while remaining virtually unknown to the general public. Over time, public enthusiasm surrounding Bitcoin has crescendoed, with the price of the digital currency rising exponentially, attracting hordes of amateur “investors” and speculators. As a result, the price of one Bitcoin has exploded by an absurd +3960% since the beginning of 2016! The ride has been volatile, including five drawdowns of at least -25% (daily close) during that period. Bitcoin’s meteoric rise dwarfs even the gains seen in the Internet Index at the peak of the notorious Tech Bubble. ➞</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:heading {\"level\":3} -->\n<h3>Love at First Bit?</h3>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>Why has the world seemingly become enamored with the concept of cryptocurrencies? The following are some of the advantages being widely touted by Bitcoin advocates:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Freedom </strong>– It is possible to send and receive Bitcoin payments anywhere in the world at any time, without scrutiny. Users don’t have to worry about third party delays or approvals, banking holidays, transfer limits, or any other laws due to lack of central authority.</li><li><strong>Anonymity </strong>– Anyone, of any age, from anywhere in the world, with access to the Internet can transact with Bitcoins without providing any paperwork or proof of identification. Since personal information is not being tied to transactions, the risk of identity theft is eliminated.</li><li><strong>Low Fees </strong>– Transaction fees for processing Bitcoin payments are relatively low. Additionally, digital currency exchanges (e.g., Coinbase) can help merchants process transactions by converting Bitcoins into fiat currency for a fee that is generally lower than most credit card processing fees.</li><li><strong>Less Risk for Merchants </strong>– Because Bitcoin transactions cannot be reversed and do not carry any personal information with them, merchants are protected from potential losses that could occur from credit card fraud.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:paragraph -->\n<p>Despite the increasing hype and number of new Bitcoin advocates, doubters and skeptics abound – and you can count us among them. An asset’s value does not go parabolic without carrying extreme risk. In addition, there are numerous pitfalls and uncertainties associated with cryptocurrencies:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:list {\"className\":\"is-style-default\"} -->\n<ul class=\"is-style-default\"><li><strong>Price Volatility </strong>– It is impossible for Bitcoin to be a good store of value and a legitimate tool for transacting business when prices change so rapidly. Imagine trying to buy a car with Bitcoin when its value is gyrating by hundreds, or even thousands of dollars over a short period of time.</li><li><strong>Intangible </strong>– Many skeptics take issue with the fact that a Bitcoin is represented by a unique string of numbers stored on a hard drive – there is no physical coin.</li><li><strong>Moral Dilemma</strong> – The anonymity provided by Bitcoin is a double-edged sword, as it makes the digital currency inherently ideal for black market dealings.</li><li><strong>Regulation </strong>– The IRS has begun taxing digital currency gains and payments. Furthermore, there is the potential that certain countries could attempt to ban cryptocurrencies altogether, particularly if terrorist activities are funded by Bitcoin.</li><li><strong>Cybersecurity and Fraud </strong>– Digital currency assets can be stolen by hackers. Additionally, as the demand for cryptocurrencies has grown, scammers and poseurs have created their own bogus digital assets.</li><li><strong>Scalability</strong> – Major digital currency exchanges (e.g., Coinbase) have had difficulty handling traffic, which causes scalability and liquidity issues.</li></ul>\n<!-- /wp:list -->\n\n<!-- wp:heading -->\n<h2>Our Perspective</h2>\n<!-- /wp:heading -->\n\n<!-- wp:image {\"align\":\"left\",\"id\":4742,\"width\":462,\"height\":260,\"sizeSlug\":\"large\"} -->\n<div class=\"wp-block-image\"><figure class=\"alignleft size-large is-resized\"><img src=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/bitcoin-3-kings-cartoon.jpg\" alt=\"Cartoon depicting three wise men, one offering bitcoin...\" class=\"wp-image-4742\" width=\"462\" height=\"260\"/></figure></div>\n<!-- /wp:image -->\n\n<!-- wp:paragraph -->\n<p>Throughout history, there have been numerous examples of revolutionary ideas or innovations that turned into dangerous bubbles due to feverish speculation and Wall Street hype ─ regardless of the good intentions of the underlying concept. In our opinion, cryptocurrencies like Bitcoin are among them. Any dispute regarding the practical applications of Bitcoin matters not to the crazed speculators driving today’s rampant price gains.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:paragraph -->\n<p>Many will argue that cryptocurrencies are isolated from other aspects of the economy and financial markets. However, we are concerned that the potential impact of a violent collapse in cryptocurrency prices could be bigger and more far-reaching than anticipated. And we are not alone:</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:columns -->\n<div class=\"wp-block-columns\"><!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><strong>Why Bitcoin’s Bubble Matters</strong>  <span style=\"font-size: inherit;\">If there’s a price crash in the cryptocurrency, it could hit the tech sector–and more</span></p><cite>Wall Street Journal - 10/8/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column -->\n\n<!-- wp:column -->\n<div class=\"wp-block-column\"><!-- wp:quote {\"className\":\"is-style-headline-highlight\"} -->\n<blockquote class=\"wp-block-quote is-style-headline-highlight\"><p><span style=\"font-size: inherit;\"><strong>Deutsche Bank Economist Says a Bitcoin Crash Would Endanger Global Markets</strong></span> </p><cite>Fortune - 12/10/17</cite></blockquote>\n<!-- /wp:quote --></div>\n<!-- /wp:column --></div>\n<!-- /wp:columns -->\n\n<!-- wp:paragraph -->\n<p>Whether speculation is in tulip bulbs, real estate, stocks, sub-prime mortgages, or cryptocurrencies, the pattern is usually the same. For investors, emotions run the gamut from greed, to defiance, to fear at any hint of a disruption in the system. Unless you have a voracious appetite for risk and a high tolerance for loss, today’s cryptocurrency bubble is best left to the speculators.</p>\n<!-- /wp:paragraph -->\n\n<!-- wp:separator {\"className\":\"is-style-default\"} -->\n<hr class=\"wp-block-separator is-style-default\"/>\n<!-- /wp:separator -->\n\n<!-- wp:heading {\"level\":4} -->\n<h4>Excerpt from <em>InvesTech Research</em> - December 15, 2017</h4>\n<!-- /wp:heading -->\n\n<!-- wp:paragraph -->\n<p>First published in our December 15, 2017 issue.  Also available to read in PDF format. <a href=\"https://ns2020-investech.investech.com/wp-content/uploads/2020/12/Bitcoin.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">Download the PDF</a>.</p>\n<!-- /wp:paragraph -->','Bitcoin - Tiptoe, through the Tulips...','We see striking similarities between the investor psychology that once surrounded those antiquated tulip bulbs and that which is driving the current mania in cryptocurrencies, particularly Bitcoin.','inherit','closed','closed','','2418-revision-v1','','','2021-06-14 18:01:01','2021-06-14 18:01:01','',2418,'https://ns2020-investech.investech.com/?p=8374',0,'revision','',0);
