What Makes Hurley Investments a Different Advisor ??
First question – What are the majority of people invested in?
401K, Mutual Funds, Tons of stocks listed that are the mutual fund, in the form of the 60/40 portfolio catastrophe
Diversification never was protection in market crashes!!!!
Why a catastrophe? IF you are the market you will never beat the market.
SPIVA US Scorecard 2023 146 page research paper
See page 11, and look at 20 years in the table. 30 years of data will be worse. Over 20 years:
96% of active large cap funds did not beat the S&P
97% of all active funds did not beat the S&P 500 composite index
98% of funds in the General Investment-Grade category did not beat the S&P
80% of High Yield funds underperformed did not beat the S&P
Now there are many different time frames. Generally the longer the time frame more funds underperform.
This means that over a short time frame you may have a fund beat for a single year and then averages better for a couple of years, but it is not a historical pattern over decades.
Here is the chart since 1927 or 98 years of returns.
26 down years and 72 up years. What is that saying?
10 years more down more than 10%
In the last 25 years we have had 5 down years so you’ve missed out on 80% of the gains OR
In the last 26 years we have had 6 down years so you’ve missed out on 77% of the gains
Let’s talk fees. What are you paying for? Well the typical response is what?- “Just hold on and wait it out. The market always comes back”
Do you realize that we had a lost decade (12.5yrs) zero growth and you paid someone to say”
Bonds had a 1% growth period as well for 6-7 years with zero interest rates. Reality 1% management fee and a 5% – 7% commissionable bond fund
Hidden Mutual fund fees on top of management, 1201B Marketing fees, taxes as they all have their own EIN Number because they are a business
HURLEY INVESTMENTS choose to invest differently and here are the reasons why:
We follow the Warran Buffett strategy of purchasing undervalued stocks
We protect stocks with the long put option/derivative
Weekly webinars
Monthly email updates
We actually pick up the phone and talk with you
We enjoy following momentum stocks.
We choose what to invest in and understand why
We don’t listen to a manager Monday morning to tell us what to invest in this week.
Why? Because every client is a friend and every account still matters to us!!!
WE MAKE MORE WHEN YOU MAKE MORE!!!!
| Here’s a stat that stops a lot of people in their tracks: Less than 4% of all U.S. stocks have been responsible for the market’s net gains going back nearly 100 years.1 That’s from a landmark study by Professor Hendrik Bessembinder of Arizona State University, titled Do Stocks Outperform Treasury Bills?1 When it was first published in 2018, it made waves. And now, newly updated data through the end of 2024 confirms what the original research showed: A small handful of companies are responsible for almost all the market’s wealth creation.2 To put it in perspective, picking one of the long-term winners at random is a bit like rolling a 25-sided die and hoping to land on a single number. Even more eye-opening? Just one-third of one percent of stocks created half of all the market’s lifetime gains. We’re talking about names like Apple, Microsoft, and Nvidia.2 Apple alone has delivered nearly $4.7 trillion in shareholder wealth. That’s almost 6% of all the wealth generated by the entire U.S. stock market since 1926.2 The top five stocks together? Over 21% of lifetime market wealth.2 The rest of the market? Most stocks either underperformed safe government bonds or lost value altogether.2 This happens, Bessembinder believes, because most companies struggle to grow or maintain market share. A few, on the other hand, create breakthrough products, dominate industries, or ride powerful long-term trends. Those outliers deliver gains so large, they carry the whole market. That’s why stock returns aren’t distributed evenly. They’re lopsided. A small number of big winners end up covering for thousands of smaller or failing companies. So what does this mean for investors? To be clear, Bessembinder’s study is based on historical data. It’s always worth emphasizing that past results do not guarantee future returns. Additionally, the study also doesn’t say investors should avoid the stock market. Quite the opposite. Historically, equities have represented one of the most powerful ways to build long-term wealth. But the catch is this: most of those returns come from a very small number of companies, and it’s nearly impossible to know in advance which ones will be the standouts. Even professional investors, with research teams and advanced tools, rarely get it right year after year. For individual investors, chasing the next Amazon might feel exciting. But statistically, it’s much more likely to end in frustration. So instead of trying to guess which stocks will succeed, the study points to broad market exposure as a more reliable approach for capturing long-term gains. With a diversified portfolio, you don’t have to find the needles. You already own the haystack! Problem is they are a small percentage of the fund That’s the beauty of broad market investing. You automatically capture the rare winners without needing to predict them. Want to know how your current strategy stacks up? This message is intended to educate, not to offer personalized advice. But if you’re unsure what this means for your specific situation, let’s talk about it. No pressure. Just a helpful conversation about investing with confidence. Sincerely, |
| P.S. Ever picked a stock that totally surprised you for better or worse? Hit reply and tell me about it. I’d love to hear your story. |
| Sources: Journal of Financial Economics, 2018 [URL: https://www.sciencedirect.com/science/article/abs/pii/S0304405X18301521?via%3Dihu]W. P. Carey School of Business, 2024 [URL: https://wpcarey.asu.edu/department-finance/faculty-research/do-stocks-outperform-treasury-bills#:~:text=Dec.%2031%2C%202022-,Updated%20spreadsheet,-%E2%80%94%20U.S.%20public] |
| Content prepared by Snappy Kraken. Investment advisory products and services made available through AE Wealth Management, LLC (AEWM), a Registered Investment Advisor. This material is intended to provide general information to help you understand basic financial planning strategies and should not be construed as financial advice. All investments are subject to risk including the potential loss of principal. No investment can guarantee a profit or protect against loss in periods of declining values. The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. It is important that you do not use email to request, authorize or effect the purchase or sale of any security, to send fund transfer instructions, or to effect any other transactions. Any such request, orders, or instructions that you send will not be accepted and will not be processed. The text of this communication is confidential, and use by any person who is not the intended recipient is prohibited. Any person who receives this communication in error is requested to immediately destroy the text of this communication without copying or further dissemination. Recipients should be aware that all emails exchanged with the sender are automatically archived and may be accessed at any time by duly authorized persons and may be produced to other parties, including public authorities, in compliance with applicable laws. 07/25-4710300 |
Undervalued stocks have no time frame.
We also have the right to sell a stock at a certain price for a certain period of time.
Here’s my example: Buy 1000 shares for $100 = $100,000
How much risk do you have?= 100K or Every Freaking Penny
Standard money manager – Just hold on means you could and most likely will have half of the value needing a 100% return to just break even
Hurley Investments AT THE VERY START is different because we protect:
Same 1000 shares of stock @ $100 a share and we will spend the Same 100K
But to lower the risk we will most likely spend another 4K to buy the right to sell your stock@ $100 a share for a certain period of time
We Start the position SPENDING a little more money to lower the risk. How?
We spent 104K but we have the right to sell the stock for the original 100K or at $100 a share
AT HI we have taught our clientele to cheer just as loudly for falling stocks as those that shot to the moon
IF our stock drops to $50 a share we still have the right to sell @ $100 OR
The POSITION HAS ONLY 4% OVERALL RISK !!!!
We take the $100 selling price and we BUY 2 shares
We lose the $4,000 in premium we paid for the protection
New Cost basis $50 + Cost of protection $2 = $52 in our new break even for our shares of stock.
IF it gets back to $100 we are profitable 96% (90%) while everyone else is just breaking even, paying their advisor to sit and watch.
This is the opportunity to have a really bad, fundamentally sound stock lose half its value and then come back
IS anyone scared for a market crash that will be the worst in history = 52-60% crash ?????
We can make money and break even in that kind of market catastrophe
Hurley Investments 888-287-1030 IF you have questions.
