Investing is a marathon

On the 1st of March FTM turned 8 and has achieved a total return since inception of 97.43%. This might not seem like a big deal but when we started FTM it was in response to the greatest financial crisis since the great depression. I still remember those dark days of 2008 like it was yesterday and how it felt going into the office each day and seeing nothing but a sea of red across the board.

Although it took a few years for all the research to come together and for the concept of FTM to be born.  I feel that we achieved our goal of never ever being at the mercy of market falls again, while achieving a return commensurate with the market long term averages.

So, starting with a total investment of $250,000 and a single share class we have expanded FTM to include 4 open share classes with annualized returns of between 8.86% and 10.57% depending on share class.  During this time, we have also managed to rack up 9 awards for our performance and embarrassed a few of the big boys. So, much so that a few ended up redefining their funds strategy, so they didn’t need to compete with us😊

To celebrate our 8th birthday FTM has waived all fees on investments from now until the 19th of April. That means you could save up to 4% simply by investing now.  So, if you have been on the fence waiting then this is your perfect opportunity to invest in a fund that is spread amongst 227 insurance companies, has never ever had a negative month and isn’t impacted by market falls.

Speaking of market falls the month of February served as a reminder of just how fast things can change. Albeit a rather brief reminder as many investors took the falls in February and the subsequent recovery of part of the losses to give them the green light to throw more money at this aging bull.

The major US indices ended February down almost 4% while the average hedge funds lost approximately 1.64% for the month of February. But, they proudly stated that they did better than the MSCI world Index which fell 3.68% during the month. Sorry, but, I will never get how losing less than others is a badge of honor……………isn’t it better to have not lost at all or better still to have turned a profit?

As FTM is not in the market it can’t lose based on market moves and as such Class A ended the month up 0.71% and capped off our 96th positive month.

What was most interesting to me during the falls in February was how quickly investors turned from elation to panic……asking question like is this the end, are we headed for a correction or a is a crash imminent. These are question that FTM investors don’t need to ask because whether the market falls or rises our returns remain the same. Granted we do tend to miss out on the upside but we also side step the downside and as investing is a marathon and not a sprint our strategy makes for less sleepless nights.



Below I have reproduced an excerpt from my personal blog from February 14 as it might help put the recent market falls into context.

The mystery of the DOW’s 7 largest falls!

After the wild ride the markets have had so far during February 2018, I wanted to take a quick look at the 7 largest point drops in the history of the DOW.

7 biggest point drops in the history of the DOW

  • 1,175.21  5 February  2018
  • 1,032.89  8 February  2018
  • 68  29 September 2008
  • 08 15 October 2008
  • 81 17 September 2001
  • 95 December 1 2008
  • 92  October 9 2008

What is really interesting to note is that out of the seven largest points drops. Four of them occurred in 2008 and that was during the Global Financial Crisis which was the worst financial crisis “so far” since the great depression……and yes I think we are due for another financial crisis.

The other large fall outside of February 2018 was on the 17th of September 2001. That was after the greatest terrorist attack on US soil and after the stock market had been closed for 4 days and investors were in a state of panic.

But on the 5th of February 2018 the DOW fell a staggering 1,175.21 points and on the 8th of February only 3 days later the Dow tumbled 1,032.89 points. Just to put this into context it took 12 trading days in January (which was also somewhat of a record) to amass a 1000-point gain and it was wiped out in a single day. Guess it’s true what they say that the bull really does go up the stairs while the bear goes out the window😊

As I write this FTM month end report 16th March 2018, the DOW is down 0.62% for the year to date, which isn’t a huge loss but considering it had one of the best January starts on record it is a little disheartening, while FTM Class A is up 1.85% over the same period.

If you are sick of gambling or playing the market guessing game, perhaps it’s time you took a closer look at FTM and what it has to offer.

So, if you are looking to start investing or simply top up your existing investment in FTM its never been easier and to celebrate turning 8 we are waiving all upfront fees. That’s a saving of up to 4%!

Simply go to https://www.ais.vu/investors/ if you are a new potential  investor complete the form and if you are an existing investor then simply log in with you details.

 

 

 

Article by Endre Dobozy

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