FSA SAFETY NET®
FSA, Thirty years smart, 1982 - 2012
No one wears the same clothing in all climates - as investors when financial conditions change, so does our investment strategy.
When hurricane winds blow, we seek shelter by moving to money market funds and preserving your resources until clear skies return.
The FSA Safety Net® - (Law of Mathematics–Losses affect performance more than gains)
At FSA, our mantra is "You win by not losing." This is more than just a catchy phrase. It is the root of our investment philosophy. Portfolio losses have a greater impact on total performance than do gains. For example, a 50% loss must be followed by a 100% gain just to break even, since you are regaining ground with half the money. While many advisors and investors constantly seek opportunities for higher returns, we believe protecting what you've made is one of the most important investment strategies you can take. To achieve this, we've created the FSA Safety Net® to help reduce losses during times of extreme volatility.
As important as it is to know what type of fund to buy, it is even more critical to know when to sell
The FSA Safety Net® is a stop loss point applied to each security in your portfolio. As the price of each security drops, it is sold when it crosses through the stop loss point. The goal is to prevent small losses from turning into catastrophic losses. The stop loss point is like a safety net used to protect a trapeze artist. The net is set low enough to allow the trapeze artist freedom to move, but high enough to prevent injury.
We customize a safety net for every fund manager's style
As prices rise, we raise the "net," maintaining a consistent distance under the fund price. Eventually, when price trends reverse, we hold the net tight. When the price hits the net, we sell the specific fund, thereby protecting the investor's assets from further loss.
While situations do arise where mutual fund companies, custodian companies, or the bond and stock exchanges themselves may, at their discretion, suspend, disallow, or fail to conduct trades, redemptions, or liquidations, the FSA Safety Net® has shown to be highly effective in preserving gains when prices reverse.
Please note: Past performance does not guarantee future results. There are always risks involved with investing–including the loss of principal.