This is What You Pay Us to Do

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“It’s not the 15% to 20% declines that cause the most trouble,
it is the -40% to -60% that take so long to recover from.”

– Steve Blumenthal

Our tactically managed advisory accounts with TD Ameritrade are designed specifically to address these concerns. Our investment process is driven by technical analysis and not emotions. Because of our process, most of your assets had already been moved out of the market. At this point, our opportunistic portfolios do not have any positions in the stock market.

Review of Our Process:
Now is a good time to review some of the basics of our investment process. At the center of our philosophy is the fact that bear markets are inevitable. Since 1926, there have been eight bear markets. The average Bull Market period lasted 9.1 years with an average cumulative return of 480%. The average Bear Market period lasted 1.4 years with an average cumulative loss of -41%.1

For that reason, we believe that skipping the worst the markets can throw at you (rather than just sit and wait it out) is a more reliable way to increase your investment return over time. In other words, it’s more important to protect against losses than it is to focus solely on gains.

That’s why, before the worst of this volatility ever started, we were:

1. Analyzing market trends to determine whether the individual investments and asset classes in your portfolio – along with the market as a whole – were trending up or down. In this case, the answer was down.

2. Obeying “the rules.” As you might remember, the rules determine at what point in a trend we decide to buy and at what point we decide to sell. For example, if an investment trends down below a certain price, we follow “the rules” and sell. Period. If an investment trends up above a certain price, we buy. Recently, the rules dictated that we sell and move to cash, so that is what we did. As a result, we’ve been able to sit on the sidelines as the markets ride the roller coaster.

As your wealth advisor, our job is to add value in the worst of times.
This is what you pay us for – to manage your investments in an unemotional, unbiased, rules-based way. That’s why it’s in situations like these that we feel we bring the most value to you and our other clients.

Of course, market volatility can still be unsettling. So, remember, we’re here for you if you have any questions or concerns. Please feel free to give me a call @ 740-354-9585 at any time. I’m always happy to talk to you!

One more thing, John , right now a lot of investors are reacting emotionally – and that primary emotion is fear. So, if you know of a friend who is frustrated with the traditional “buy and hold” approach, please have them call us. We would be more than happy to address their concerns.

In the meantime, please let us know if there is anything we can do for you! As always, we greatly appreciate your continued trust and confidence in our services.

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Jeremy Frazie

Wealth Manager

About Jeremy

Jeremy Frazie is founder, owner, and wealth manager at Frazie Wealth Management, a wealth services firm that helps manage and organize the financial affairs of select families in the tri-state area. With over a decade of experience, Jeremy specializes in serving business owners, professionals, and individuals in the Retirement Red Zone, providing a wide range of services to cover every aspect of their financial life through every stage of their retirement. Jeremy is known for his client-centered, relationship-based process that gives his clients the tools and support they need to achieve their goals and overcome obstacles. He is deeply passionate about making an impact on others’ lives and helping them look to the future with confidence. Jeremy graduated from Marshall University, where he played defensive back for the Thundering Herd football team, with a degree in finance, and has both the Accredited Investment Fiduciary® (AIF®) and Professional Plan Consultant® (PPC®) designations.

When he’s not working, Jeremy enjoys spending time with his wife, Erika, and their two sons, Breydan and Boston. You can often find him visiting the Florida gulf beaches, watching sporting events, golfing, and fostering his love–hate relationship with CrossFit. To learn more about Jeremy, connect with him on LinkedIn.