PerformanceSignal Core Principles
Principle #1: Don't Lose Money!
Sounds easy does'nt it?, but if you've had money invested in the stock market for any length of time, you've experienced losses but perhaps you don't know the effect on your investments. The problem when you lose money is the recovery effort: if you lose 50% of your capital you must make 100% to break even.
For example, if you have $10,000 and you lose 50%, that leaves you with $5,000. You now have to make 100% return on your money just to break even. What was your annual rate of return last year? 5%? 10%? ? Are you getting the picture on how LONG it will take to recover that 50% loss?
Here is a simple chart to illustrate how the percentage of loss on your capital effects the percentage that must be gained back to break even.
% Loss of Capital % of Gain Required to Recover
Declines make a difference.
PerformanceSignal alerts you to move into safe investments when a decline is imminent and alerts you to move back when rising prices return.
Let’s take a look at stock market returns vs. PerformanceSignal during the worst declines between March 2000 and October 2002. This graph illustrates the market decline and at which point members would have received an alert to either move proceeds to cash or move proceeds into stock funds.
While the S&P 500 lost 50%, PerformanceSignal would have generated positive returns.
Click here to see how even a 2% increased annual return can double your retirement!
Principle #2: Enhance your returns without incurring excessive risk!
Many try but few succeed. The markets are shark infested waters and most investors are no match for the few groups of investors with superior resources. Dalbar Inc., a respected Boston-based financial market research company, released a study showing that when left to their own, investors tend to significantly under perform the market. During a 19-year period from 1984 through 2002, Dalbar found the average equity investor earned an anemic 2.57% annually, versus an average inflation rate of 3.14% and an annual return of 12.22% for the S&P 500.
So how do you get better returns without taking on excessive risk? It's not easy but we have pioneered some of the most innovative techniques (see "Our methodology") to measure and track money rotation. Our indicators give us a total composite of market dynamics not seen or understood by the public or most institutional entities. Our research gives us a view of money rotation and institutional money flow that few can access and this is clearly the secret to our enhanced returns - the proof is in our results, which are now verified by third parties (see PerformanceSignal results).
Our proprietary indicators insure that we trade on the same side as smart money participants, such as, large commercial traders, NYSE Specialists, company insiders, and others that have a proven ability to outperform the markets - and now you can too without having to learn ridiculous techniques, decipher indicators, read charts and graphs or make excessive changes to your investments that just lead to high fees and commissions, time consuming management, and below average performance.
Knowing when to increase your allocation of safe haven investments (such as cash and money markets) or increase you allocation of riskier investments (such as stocks) can be very counter intuitive at times; PerformanceSignal pinpoints the right times for you.
Back tested against common stock indexes since 2000, PerformanceSignal has dramatically outperformed “buy and hold strategies” with no losing years. When used with a diversified portfolio, one can expect enhanced returns with less risk. See PerformanceSignal results.