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Reducing Volatility Can Help Maintain Sanity & Account Balances

 

Would you rather have annual returns of 5%, 10% or 20%? Easy choice, isn’t it? Now alternate those positive returns with corresponding -5%, -10% and -20% losses and choose again. 

Stadion believes that keeping realized gains through all market cycles is key for protecting account value. Our defensively biased processes monitor market risk, seeking to minimize downside volatility and provide beneficial market exposure over time. Below are three scenarios showing alternating returns of ±5%, ±10%, and ±20%.

 

 

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There is no guarantee that the investment strategies will succeed, the strategies are not an indicator of future performance and investment results may vary. Stadion’s actively managed portfolios may underperform during bull markets. Stadion is the source of both charts. The hypothetical example does not represent the returns of any particular investment.

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Past Performance is no guarantee of future results. Investments are subject to risk, and any of Stadion's investment strategies may lose money.