• A buy-and-hold strategy works over a very long time horizon (40+ years) but can fail miserably over shorter time frames. The chart
shows how a portfolio of U.S. stocks would have fared over the past decade.
• Modern Portfolio Theory (MPT) takes traditional buy-and-hold one step further by spreading risk among asset classes of varying
correlation (stocks, bonds, etc.)
• But there are problems with MPT as well: It assumes that the future will behave like the average of the past and it always places
the investor (at least partially) in asset classes with the greatest risk.
• Now, there's a better way! The Portfolio Preserver® steps in where MPT leaves off.