The Case for Doing Your Own Investing
You’ve probably been told that investing your own money in the stock market is too risky and that you should depend on professional investment managers. The truth is, you can be successful doing your own investing. If you base your trust on big brokers and financial “wizards” who may not perform well and most often do not have your best interest in mind, you could end up wishing you had invested your money yourself. After all, it’s your money, and you care about it more than anyone else.
Financial concepts can be overly complicated for the individual investor. For example, your company retirement plan offers several different mutual funds, but how do you choose which ones are right for you? Even those funds are highly correlated to the stock market and to each other and rarely outperform the S&P 500 index.
The goal of Cromer Wealth Management is to make financial decisions and concepts easy to understand. We don’t just simply offer investment theories, –we build trading strategies that are meticulously back-tested in bullish and bearish markets. Not only that, but we provide model portfolios that show our members exactly what each strategic portfolio consists of. Combining several non-correlated strategies provides reduced risk and overall stability and maximum profits. Reduced risk is paramount to the financial success of the individual investor. Our customers appreciate the objective and accurate information we offer, and they look forward to our timely updates.
Portfolio Strategies
All these models (and others) are designed to outperform the market. You will see below some examples showing the historical performance of some of the strategies.
Very Conservative Portfolio
Here’s one of our conservative strategy. Over the past 53 years, this model’s maximum drawdown was just 7.8% — that’s remarkably low for such a long time period.
It’s designed for investors who want steady, consistent returns without taking big risks.
Conservative Investment Portfolio
Now, here’s another example — also conservative — but designed to outperform the market while keeping risk low.
This portfolio combines four different strategies and has delivered an average annualized return of 19.8%, compared to the S&P’s 14.7%.
That extra 5% a year might not sound huge, but over time, it’s powerful. In this model, a $100,000 portfolio grew to over $1 million — almost double the S&P’s result — all while maintaining a low drawdown.
Wealth Creation Portfolio
For those looking for something more aggressive, we also have a higher-growth model — part of our Let’s Get Rich strategies.
This portfolio has averaged a 52.9% annualized return, compared to the S&P’s 14.7%.
Even with a 23% drawdown over 12 and a half years, the Sharpe Ratio — which measures return relative to risk — is an impressive 2.3.
Starting with $100,000, this strategy compounded to over $19 million — a powerful illustration of what disciplined compounding can achieve.
These sample portfolios illustrate the power of blending non-correlated strategies to grow account and minimize risk. The following is a presentation where Ray Dalio talks about this.
Our goal is to help you outperform the market, with less risk. Each model portfolio aims to outperform the stock market in gains while minimizing risk.
The key is to manage the risk of all your holdings together, rather than considering each one separately. Here at Cromer Wealth Management, we give our members the tools and education they need to effectively manage portfolio risk while maximizing returns.
Comer Wealth Management provides easy-to-follow asset allocation models, doing all of the hard work for you, researching risk levels for each asset class, reporting on returns, and providing allocation models designed for our members.
The most important benefit is the peace of mind you will have knowing your portfolio will have less risk and much greater profits.
Key Points
When combining strategies, the resulting return is based on the average of each of those returns.
Combining non-correlated strategies reduces the overall volatility of you portfolio.