Did Mr. Market Trick-or-Treat You This Past October?

By Marketing Analyst, Jordan Cornelius on November 9, 2018

October is usually known as a “scary month.” Not only because Halloween lands in October, but because of the volatility for which October has become infamous; also known as the “October Effect.”

October has played host to the Panic of 1907, Black Tuesday, Black Thursday, multiple Black Mondays including the Black Monday of 1987 in which the Dow fell 508 points or 22.87%, and now, in October of 2018 when the S&P lost almost 7%.

So, I ask you this, Did Mr. Market Trick or Treat you this October? Were you lulled into believing equities were the only investments your clients should own and that this 10-year bull market would never slowdown? 

If you were tricked and you saw your clients’ portfolios take a hit this past October, it’s not too late for you to start diversifying! The iSectors® Post-MPT Growth Allocation is an amazing tool to help you diversify your client’s portfolios. Using a mathematical process factoring more than a dozen economic and capital market factors, the Post-MPT Growth Allocation is objectively allocated and rebalanced every month among nine specific, low-correlated asset classes. The objective of Post-MPT Growth is to achieve investment returns that outperform the S&P 500 Stock Market index with lower downside risk over a complete market cycle.

The graph above compares an investment in iSectors® Post-MPT Growth to that of the S&P 500 Index. Average returns for rolling 12-month periods of each investment over 10 years are presented. When the S&P 500 is negative, Post-MPT Growth outperforms 88% of the time and captures only 42% of the loss. When the S&P is positive, but with a gain of less than 10%, Post-MPT outperforms 66% of the time. When the S&P gains over 10% in a 12-month period, Post-MPT Growth manages to capture 71% of the gain.

As you can see, from the graph protecting downside risk is a primary goal of the iSectors® Post-MPT Growth Allocation. Don’t be caught in only equities during the next correction! Diversify your clients’ portfolios with iSectors® Post-MPT Growth Allocation.

To learn more about the iSectors® Post-MPT Growth Allocation or any of iSectors’ fifteen other unique ETF Asset Allocation Models, please contact Scott Jones at 1-800.473.2867 or [email protected].

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