Why Absolute Return?
To answer this question, we first need to comprehend “What is Absolute Return?“, where we understand the difference between absolute return and relative return strategies, and the definition of Absolute Return.
Next, we need to dig into ”Why not “time-tested” Buy-and-Hold Long-term Investing?“. This set of articles reveals paradigm changing research which shatters widely held myths about long-term Buy-and-Hold investment strategies. Learn how long-term Buy-and-Hold investing in stocks offers investors about a quarter of the chance of a coin toss of giving you a 6%+ real return. Understand how it could be more a matter of when you were born and when you began or would end investing, on whether you obtain a reasonable return from a long-term Buy-and-Hold strategy in stocks. Visually see how often and for how long investors have had to suffer drawdowns (or drops) of more than 30% in real portfolio values in the last 140 years. Examine the historical myopia of proponents of Buy-and-Hold. And then get a glimpse at the bullet riddled theories that form the basis for Buy-and-Hold investing.
Finally, we need to understand the significance of The Absolute Return Opportunity, i.e. get a feel for the profit potential from Absolute Return strategies and why we believe ours need to be a core part of your portfolio.