The recession is real. The recession is national. The recession is global. The effects of the recession are confronting investors, homeowners, employers and employees throughout the country and around the world. When January household income and consumer spending performed better than expected, the markets hardly blinked because big layoffs continue as banks teeter and insurance giant AIG reported the biggest quarterly loss in American economic history.
Custodio Asset Management understands investor concerns. As major indices fluctuate, the national and global markets seem unable to stabilize. The reality is that protecting and growing wealth in these difficult times is serious work, not suited for the feint of heart and truly an endeavor for professional money managers. CAM addresses these market conditions with steadfast discipline, complete transparency and with a proven track record of success.
CAM’s goal is to use every available resource and our proprietary hands-on investment strategy to continue to build our wealth management services. We understand that investors are skeptical about the markets. We understand that market conditions are volatile. However, CAM is committed to applying the same strategy that saw our portfolio gain +179.988% between October 2005 and December 2008.
Prospective clients are now calling every day. These clients are shaken and searching for answers. Most have seen their investment funds decrease by 40% or more. The lingering questions are “what has happened to my hard earned money” and “how much will this recession cost me in the long run?”
Perhaps this unedited summary says it best:
***
By: E.W., USA
Thu Oct 09, 2008 at 01:45:27 PM PST
“I receive a 401k from my employer and have consistently been putting money into it for several years. I knew the 401k would be hit hard, but I chose to ‘ignore’ it because I was a little scared. Anyway, I just wanted to share this with everyone because I don’t think people really understand how much this financial crisis is hurting normal people.
Me and my wife are still relatively young, so we’re not as hard hit as most people are. We still have plenty of time before I retire, so I’m not too concerned about myself. What surprises me is that I chose all of the recommended mutual funds, just like most people probably did.
Here is what my Fidelity 401k looked like today when I finally decided to take a peek. “Personal Rate of Return from 01/01/2008 to 10/08/2008 is -39.7%.”
All I can say is… WOW. 40% of my hard earned savings for retirement down the drain. It’s really hard for me to put the 5% aside from every paycheck and I’m just shocked at how badly I’ve done.
The worst thing is the companies that pick my stocks made tons of money while I’m out so much.
Anyway, just thought some would be interested in an average person’s retirement account. Talk about a shock! I just feel badly for the 60-70 year olds that were looking to retire.”
***
Since E.W wrote this in October 2008, the market has faltered even lower. The sad reality to this common story is that most investors are experiencing financial paralysis.
This bear market still provide opportunities to build wealth, but conditions dictate experience and prudence and a willingness to have an open mind. In today’s marketplace, traditional buy and hold strategies have proven to be ineffective and laden with extremely high risk.
During the time (01-01-08 - 10-08-08) that E.W. lost -39.7% of his portfolio, CAM investors actually gained +5.435%. By 12-31-08, CAM had used the market turbulence to record a +23.986% annual gain.
Through February this year, CAM has produced a positive +1.452% YTD while the S&P has lost -16.653% and the Dow runs negative for the 6th straight month at -18.166% and has dipped to twelve-year lows. CAM investors actually gained +0.032% in the month of February as the Dow shaved -10.993% of its value.
This is a time for investor action. This is a time for change and proactive investment strategy. The prudent investor will grow while the conventional investor will falter and spend decades trying to recoup losses. At CAM, we stand ready to help.
