The Biggest Investment Secrets Major Brokerage Firms
Don’t Want You To Know!
The secret is out! Major brokerage firms have failed to be as fair and open with their “cherished” retail clients as they should. Major brokerages have also, as a general policy, withheld from you an investment that studies have repeatedly shown, can potentially increase performance and reduce risk in an overall portfolio!
Ask yourself: Why have many of the largest brokerage houses attempted to keep this investment under wraps? Just as major brokerages avoided losing investment banking business by issuing sell recommendations on companies from whom they derive substantial revenues, so too, we believe, will they avoid telling you about this established investment because they fear losing business from you, their retail customer. Most major brokerages stick to their bread-and-butter stocks and don’t offer this investment! Yet institutions and savvy investors have, for quite some time, made a place for this investment in their portfolios.
The investment we are referring to is professionally Managed
Futures!
Surprised? Don’t be. There is a big difference in the results between amateurs and professionals trading futures. If an unskilled person attempted to practice law or medicine, they’d probably perform quite poorly, just like many non-professional, amateur futures traders. So it comes as no surprise that in the highly complex and challenging world of futures trading, the vast majority of non-professional, amateur futures traders do lose. However, experienced professional commodity trading advisors (CTAs), have been shown to achieve consistent returns through prudent money management. Bear in mind that the risk of loss exists no matter who is managing your money, and that the potential exists in futures trading to lose more than your initial investment.
Commodities Are The Place To Be!
Led by gold, copper, crude oil, cattle, soybeans and other raw materials, leading commodity indices are making new highs. Commodity markets also include trading in the US Dollar, Swiss
Franc, Japanese Yen, Euro Currency, Stock Indices, US Treasury Bonds and Notes.
Many believe we are in the midst of a major primary bull market in commodities…..one that comes along only every 20 to 30 years! With practically a zero correlation to stocks, and the ability to capitalize on both rising and falling markets, commodities are an excellent alternative investment to add profound diversification to an overall portfolio!
What are ‘CTAs’ and How Can They Help You?
Commodity Trading Advisors (CTAs) are professional commodity traders. CTAs manage investor’s assets using futures market-related investments, similar to a stock fund manager who invests his client’s assets in a variety of stocks. CTAs can potentially capitalize on rising, falling and lackluster markets. CTAs bring to futures trading many of the same professional money management benefits that equity managers bring to the management of stock
and bond funds.
Modern Portfolio Theory and its Implication for You
Pension funds and sophisticated investors have long relied on Modern Portfolio Theory (MPT) in attempting to obtain the highest returns with the lowest level of risk. The premise
underlying Modern Portfolio Theory tells us that the risk of any investment can be reduced and performance increased by holding a number of non-correlated investments in a variety of differing asset classes. Non-correlated investments, by design, do not move in lockstep with one
another. The father of MPT, Dr. Harry Markowitz, cautioned investors, “holding securities that tend to move in concert with each other does not lower risk.” Dr. Markowitz concluded that a diversified portfolio comprised of investments not correlated with securities could provide the
highest returns with the least amount of risk.
Offering almost a zero correlation
versus stocks, professionally Managed Futures fit this description quite
nicely.
Trading Futures and Options on Futures transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Managed Futures and Portfolios: A Provocative Statement
Managed Futures have long been employed in connection with diversifying institutional portfolios. One such example is prestigious Harvard University! Jack Meyer, the former chief executiv of that school’s endowment fund, regularly included commodity and financial futures-related instruments in the portfolio. In fact, this proponent of Modern Portfolio Theory has placed himself on record by stating, “Holding commodities offers protection against the ups and downs of stocks and bonds; they’re the most diversifying asset in the portfolio. The benefits of diversification are indisputable; diversification rules. It’s powerful and our portfolio is a good deal less risky [with commodities] than with only the S&P 500!”
Isn’t it both wise and prudent to shift one’s investment focus to the areas that can potentially provide the greatest investment opportunities? Some experts liken commodities to stocks and bonds in the early 1980s. Both embarked on one of the great bull markets after a long period of sluggishness. Think opportunity and think long term. Led by ever increasing demand from China, and an unstable political situation in the Middle East, many believe we’re at the “sweet spot” of the economic cycle for raw materials, representing a classic opportunity for investors.
Trading Futures and Options on Futures transactions involves substantial risk of loss and may not be suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
Contact Us Today!
Be an informed investor. Our experienced staff are waiting for the answers to your questions. Clarify the myths, and learn the facts about Managed Futures! If ever there was a time to learn about Managed Futures, it’s now! Managed Futures can help protect your portfolio from stock market volatility, while increasing returns and reducing risk.
P.S. Professionally Managed Futures
can be used in your existing qualified retirement plans including IRAs, SEPs,
401s and Trusts.
