Portfolio Killer

Another drubbing yesterday pushed the major indexes down to their lowest levels in some 5 years. The speed with which the markets have fallen surprised many and in the process destroyed just about all Buy-and Hold portfolios.

As I have repeatedly said, investors need to lose some serious money before they will awaken to the fact that they have been sold a bill of goods via the idiotic advice of buying and holding a portfolio into oblivion. I know, because I had my share of calls and emails from furious investors, who had their accounts with major money management firms, only to see them lose some 40% so far this year.

I have been saying the same thing over and over again that this bear market has the potential to make the last one (from 2000 to 2002) look like a pimple on a gnat’s butt. As always, most investors don’t see the light until it’s too late and major portfolio damage has occurred. If you still have any money invested, head for the sidelines, regroup and review your investment approach as well as the guidance and advice you have received.

Right now, the markets seem to simply ignore the Fed’s latest steps to intervene as another useless attempt to stem the tide. The bear is in charge right now—so don’t get in the way of the downtrend. Why? Because you don’t have enough money and time to outlast this one and then try to attempt to make it back. Being a broke hero, is simply not worth it.

About Ulli Niemann

Ulli Niemann is the publisher of "The ETF Bully" and is a Registered Investment Advisor. Learn more
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