About HK Wealth Management
HK Wealth Management, Inc., was formed in 2009, a rocky time in the markets to say the least, but the need for investors to get a higher level of attention to their portfolios was so pressing, the timing could not have been better. Most investors had seen nearly half of their portfolios wiped out in 2 distinct market draw-downs since the beginning of this millennium. If you look at any chart of the major indexes, there was a huge drop as the tech bubble burst in early 2000 which lasted well into 2003. Then the markets saw a meteoric rise through the middle of the decade, only to see another meltdown in 2008 and 2009. Even with some rebounding, then end of the decade saw most account values closing out just about where they started 10 years prior. It was simply time to discard the old Wall Street paradigm of “buy and hold,” and look to a new methodology of portfolio management.
End “buy and hold” —– Enter “Buy, hold and sell”
There is no way to time the market. However, our proprietary management strategies allow the market to time us, thereby eliminating a great deal of the exposure to draw-downs. Selling near market tops and moving to cash, we are able to preserve the bulk of the accumulated value, which allows for a greater base to buy in near the cyclical low points. The historical average over the last century of the market indices tells us that nearly 95% of the trading days, markets are recapturing previous losses. Holding through this climate is no way to invest. However, if major portfolio losses are eliminated, then 95% up days in the market become your best friend. When this method is adhered to over a complete market cycle [full bull/bear], the returns are superior. Now apply this over repeated market cycles and accumulated gains compound themselves again and again.
We are approaching the longest bull market in history. Do you want to give up a huge percentage of what you have attained over the last decade, only to have to make it all back again?
Our motto: “Invest for growth, but more importantly mitigate losses, if we do that then returns will take care of themselves.”
For perspective, below you can find a Chart of the “Real Inflation Adjusted” time it takes to “Make Back Losses”. However, if we can mitigate those losses before they occur, then we don’t have to “Waste Time” making those losses back. (Hat Tip to Lance Roberts at RIA – www.realinvestmentadvice.com)