August 14, 2019

Volatility, volatility, volatility: that has been the theme of this market since January of 2018.  I would never invest without the HCM-BuyLine Alpha because there is real risk out there that needs to be managed. The market is still above the HCM-BuyLine Alpha, so we will maintain our equity holdings until the market falls below the HCM-BuyLine Alpha.

 08-14-2019 currentalpha

Morningstar released a statistic on managers’ tenure:

  • Average tenure of a fund manager is 8.3 years for large funds. For smaller funds, the tenure is even lower.
  • Over half of all managers have never seen a bear market, and they have never seen a rate cut.

08-14-2019 20-Year

If that does not wake you up, nothing will. A lot of managers have never seen a market cut in half, such as during the bear market of 2000/2002 and the devastation of 2008. They have never seen an investor spend 4-8 years getting back to even. At HCM, we have never sat through a bear market thanks to the HCM-BuyLine® and the HCM-BuyLine Alpha. The HCM-BuyLine Alpha was designed to compete with computer-programmed trading.

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