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5 Reasons to Consider Proactive Management 

  • Buy and hold is dead(ly)—While bull market runs are impressive, history shows it is not a matter of “if” but more a matter of “when” the next bear market will occur.

  • Investment expert Kenneth Solow sums it up: “Patiently waiting for stocks to deliver average returns does not rise to the level of an investment strategy.”
  • Bear market math is daunting—It takes longer than most investors think to recover from bear markets—a gain of 50% is needed to overcome a 33% portfolio loss.
  • Risk first: always—No one would ever jump into a car without brakes, so why would investors even consider having an investment strategy that did not have a strong defense?”
  • Proactive management aligns with investor psychology—Behavioral finance studies have documented that investors are twice as worried about loss as they are about gains.

  • Does “set it and forget it” really make sense?—For retirees or those approaching it, the “sequence of returns” dilemma can have a devastating effect on future income needs.

  • Proactive management offers a prudent path to achieving the twin goals of asset preservation and compounded capital growth.