The Arbor Investment Planner is dedicated to help individuals save and invest their own money. The Arbor Asset Allocation Model Portfolio (AAAMP) is a real-time model for the benefit of AIP subscribers.
Question: Why is the AAAMP continually hitting ALL-TIME HIGHS while the market is still 29% below its all-time high?
Answer: Our conservative active asset allocation strategy preserves capital in down markets. If an investor loses 50% of their capital it takes a 100% gain to breakeven. If an investor loses 10% it only takes an 11% gain to breakeven. By preserving capital the investor can buy when prices are low and more importantly has most of their capital preserved for appreciation when the market rises. This allows compounding to work in the investors favor. By keeping losses small (just <2%> in 2008) the AAAMP has been able to surge to new highs with a large gain in 2009.
BOTTOMLINE: The Arbor Asset Allocation Model Portfolio (AAAMP) finished the decade at an ALL-TIME high up 120% versus the S&P500 which finished down <11%>.
Here are the total returns for the AAAMP and the S&P500 for different periods of time:
AAAMP S&P500
1 Year +20.4% +23.5%
2 Years +18.0% <22.2%>
3 Years +33.0% <17.9%>
5 Years +67.7% + 0.0%
10 Years +120.2% <11.3%>
Our active asset allocation strategy has provided us the flexibility to be conservative when prices are high and aggressive when prices are low. The strategy has produced superior long term performance with considerable less volatility (risk) than the market.
More Information available at : www.ArborInvestmentPlanner.com.
