We’ve seen a lifetime of volatility over the past 3 years. Volatility, in the extreme, has always been a temporary issue, followed by periods of relative stability. However, given the economic headwinds that we face both domestically and internationally, we expect chaotic movements in the marketplace for some time.
To that end, we have had to become very active in your accounts. Strategies that once had few trades now have a good deal because of the environment in which we are in. As clients, you have seen the repositioning of your investments to offset some of the risk in the market. We would much rather remove risk and protect the downside, than simply hope that the markets self-correct.
Because we are “playing defense”, by increasing cash, fixed income, and less volatile equity investments, we are also opening ourselves up to underperformance on the upside if the market suddenly shifts directions and starts to move dramatically upwards. We strongly feel that this is the best tradeoff, as the potential downside is far greater in our opinion than the potential upside. Preservation of capital has always been paramount in importance to our clients and only becomes more important as the market slides.
We appreciate your business, and are working very hard to manage your accounts in an incredible tough global market. We hope to continue to earn your trust by proactively adjusting your investments to reflect economic and market realities.
VZN Team
Chaos is the norm – 10/05/2011
We’ve seen a lifetime of volatility over the past 3 years. Volatility, in the extreme, has always been a temporary issue, followed by periods of relative stability. However, given the economic headwinds that we face both domestically and internationally, we expect chaotic movements in the marketplace for some time.
To that end, we have had to become very active in your accounts. Strategies that once had few trades now have a good deal because of the environment in which we are in. As clients, you have seen the repositioning of your investments to offset some of the risk in the market. We would much rather remove risk and protect the downside, than simply hope that the markets self-correct.
Because we are “playing defense”, by increasing cash, fixed income, and less volatile equity investments, we are also opening ourselves up to underperformance on the upside if the market suddenly shifts directions and starts to move dramatically upwards. We strongly feel that this is the best tradeoff, as the potential downside is far greater in our opinion than the potential upside. Preservation of capital has always been paramount in importance to our clients and only becomes more important as the market slides.
We appreciate your business, and are working very hard to manage your accounts in an incredible tough global market. We hope to continue to earn your trust by proactively adjusting your investments to reflect economic and market realities.
VZN Team