Liquid Millionaire - isaco

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Liquid Millionaire
behaviour at key turning points like market tops and bottoms and learn
how to capitalise on them. As O’Neil explains…
“Recognising when the market has hit a top or has bottomed out is frequently
50% of the whole complicated ballgame.”
Th e buy a nd hold st r ate g y do e s not work w it h ISA Tre nd I nve st i ng.
Anybody who was using the buy and hold strategy, and bought a
technology fund just before the 2000-2002 bear market, would have
probably seen catastrophic losses. And those losses could have been in
the region of 75% to 90%. To make up for a loss like that, it can take you
as much as a decade or more just to get back to even.
Take a look at this example.
• A loss of 33% requires a 50% gain just to get back even.
• A loss of 50% requires a 100% gain just to get back even.
• A loss of 90% requires a 900% gain just to get back even.
Th is is why it is so important to preserve your capital and get out of the
market and into the safety of a cash based fund when you can see the
fi rst signs that the market’s health is deteriorating.
Does your current adviser tell you when the market’s health is
deteriorating?
Do they advise you to switch out of the market at the fi rst signs of a bear
market?
Do they suggest that you switch into a cash based fund to protect and
preserve your capital?
If they don’t, why not?
You see, after you identify the fi rst defi nite indications of a market top,
you can’t wait around. You have to quickly get out of your chosen fund/s