HAS THE AMERICAN INVESTOR GIVEN UP?
When is it a sure-fire, logical winning investment strategy to do exactly what everyone else in the market is doing?
Here’s a clue . . . NEVER.
According to the U.S. Government Accountability Office almost half, 48 percent, of Americans are approaching retirement with nothing saved or so little saved that they will struggle to economically thrive through their retirement years.
This everyday reality is fueling countless retirement plan lawsuits, as people wake up to the shocking fact that passive investment strategies have done little to prepare them for today’s retirement realities.
Equity investment is difficult.
It takes education, timely access to information, years of experience, technology, technical expertise, research, clear judgment, objectivity and big picture foresight for starters.
Is this why many have given up and passively settled for average investments that mirror an index?
Average investments are not enough to replace 70%-80% of a person’s salary at retirement.
The market is full of exceptionally bright investment managers with decades of successfully outperforming the averages.
It literally takes no talent to mirror an index.
And yet, investors have been paying Vanguard for doing just that.
And paying them well.
Vanguard has raised nearly 10X the amount of new assets over the past few years as all mutual funds combined have raised.
Vanguard manages over $5 trillion in assets. Black Rock, iShares and ETFs, have seen their assets grow over 27% annually in recent years to over $6 trillion in assets.
The stock market has been good over the past decade.
But when the market drops 20%, 30% or more,
how happy are indexers going to be to mirror the market?
How thrilled are retiree’s going to be when their portfolio is down 20% 30%, or more at a time when they are most dependent on the income from their portfolio?
Vanguard and Black Rock have published studies persuading the investment world that using their approach of mirroring an index is the best return you can expect.
Essentially, Vanguard skillfully convinced the investment world to give up – nobody can achieve outperformance.
Have we all been led to embrace the notion mirroring the market along with the vast majority of equity investors makes our investment results wonderful – because we paid next to nothing in fees?
My brother-in-law always tells me the average investment manager can’t beat the index (John Bogle would be proud).
Perhaps that’s because the average manager is just that, average.
Find an above-average investment manager and
your investment results are likely to be above average.
Vanguard’s John Bogle convinced investors to give up in the wake of 2008-2009.
Passive investing adds zero unique value to the investment landscape.
ERO, on the other hand, provides advanced forecasting technology, allowing wealth managers the assurance they are in the right fund at the right time.
No more expensive Morningstar data, no more tedious, time-consuming interviews with fund managers.
ERO frees up time to concentrate on what matters most, communicating with clients and growing your wealth management business.
At ERO, we don’t manage money. We don’t compete with advisors.
ERO is the world’s only forecasting technology that provides statistical evidence confirming when adding active managers to your investment portfolio will add value.
Is it worth the risk to continue doing exactly what everyone else in the market is doing?
Let us help you educate your clients, improve your investment performance and the likelihood your clients will achieve their investment goals.
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