7Twelve Advisors, LLC

7Twelve Performance Over Last 10 Years

the7twelveadv — Wed, 13 Feb 2013 01:10:30 +0000

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Must Bond Investors Fear Rising Interest Rates?

the7twelveadv — Tue, 24 Jan 2012 00:00:52 +0000

Please find attached a link below to an article published by Advisor Perspectives called: Must Bond Investors Fear Rising Interest Rates? This article is the result of exhaustive research with my assistants over nearly a twelve month period. I think you will be surprised by my conclusions. — Andy Martin

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Diversification Works in Bad Markets

the7twelveadv — Thu, 01 Dec 2011 00:00:03 +0000

For the entire history of the Dow Jones Industrial Average (Dow), investors have suffered 14 of the 20 largest point drops since 2008. The large numbers are partially because the Dow reached its all time high of 14,164.53 on October 9, 2007, and partially because market volatility is so high.

Investors have not been rewarded for this volatility as the stock market is now more than 20% below its high, and have responded recently with outflows from mutual funds – the “…steepest drop since the financial crisis.” (Source: Wall Street Journal, Aug 11, 2011)

What to do? Though the average loss from the 14 largest point drops of the Dow was 5.68%, the average loss from an equally-weighted diversified portfolio of 7 core assets of US and non-US stocks and bonds, cash, real estate and commodities was only 3.53%.

Diversification shielded investors from roughly 40% of the market drop.

Over the following two years from each down day measured, diversified investors earned on average 88% of the Dow back. Net result? Diversified investors lost less on every down day measured, and delivered nearly the same net returns after the recovery.

Conclusion? Risk ≠ Reward. Diversification lowered risk on the worst days but did not lower the net returns after the recovery. Risk was lowered – not returns. Do yourself a favor. Diversify now. — Andy Martin

(Source: MartinMetrics, Wall Street Journal, Market Data Center, Yahoo Finance, Adjusted closes, end date, 2 years after, and Morningstar, Inc. 7 assets portfolio was an equally-weighted all index portfolio.)

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Bad Market? Try Diversification

the7twelveadv — Sat, 01 Oct 2011 00:00:23 +0000

(Click images to view original article/chart)

Source: Vanguard & Morningstar

Source: Morningstar

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Market Anxiety? Let History Be Your Guide

the7twelveadv — Tue, 09 Aug 2011 00:00:48 +0000

Please find attached a link below to a research article called: Large Stock Market Drops Usually Followed By Good Year. — Andy Martin

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Welcome to the 7Twelve Advisors, LLC Blog!

the7twelveadv — Fri, 01 Jul 2011 00:00:39 +0000

7Twelve Advisors, LLC will post timely articles & research regarding diversification and the 7Twelve Strategy. Join us!

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