Seeking to Protect Long Term Gains
It can take years to accumulate a meaningful gain from investing. Unfortunately, those gains can be wiped out by a single bear market cycle. A 100% gain would be completely eroded by a 50% loss. Market corrections can happen at any time, including the time when you need your money most — at or near retirement.
When It Comes to Growing and Protecting Your Wealth, Half May be Worth More
Instead of seeking market like returns, might there be a better approach? Reducing volatility and achieving just 50% of the market’s gains and losses can have a positive effect on your account value as seen below. It’s important to note, the results could be different if the time period began at the end of a market correction. That’s why Stadion’s defensively biased strategies seek to participate in market gains while protecting during severe market downturns.
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The hypothetical example does not represent the returns of any particular investment. The chart above, S&P 500 Index, 1/1/00 – 3/31/17, has been reformatted with permission from Crestmont Research (www.CrestmontResearch.com). Percentages in the graph are rounded. The S&P 500 Index is the Standard & Poor’s Composite Index of 500 stocks and is a widely recognized, unmanaged index of common stock prices. It is not possible to invest directly in an index (like the S&P 500) which is unmanaged and does not incur fees or charges. Past performance is no guarantee of future results. Investments are subject to risk, and any of Stadion’s investment strategies may lose money.
Past Performance is no guarantee of future results. Investments are subject to risk, and any of Stadion's investment strategies may lose money.