Origins of The Aqueduct Strategy
It was 2001 — and I was in the middle of the worst bear market in my career.
After nearly a decade of enormous growth, the economy was self-correcting. Panic started in March of 2000, and there didn't appear to be any let up with selling.
My financial advisory clients’ portfolios had cratered and the news affecting the markets kept getting worse and worse. I was scrambling to find any good scenario that could possibly come out of this terrible mess.
So, I went back to the basics. I took stock of what I knew to be true; I wrote down my “known knowns”:
I knew I wasn’t any good at market timing.
I knew I wasn’t any good at stock picking or sector selection.
I knew you had to stay fully invested if you wanted long-term capital appreciation.
I knew the market imploded every five years on average and people's response was to panic and sell out.
I knew that even after the market got kicked in the teeth, it always went on to higher highs. Every. Single. Time.
I knew all these things, so the question was how do I use them to my advantage?
Then it dawned on me…
Simple. When the market is getting absolutely crushed by 30%, 40%, 50%, or even more, I amplify gains from the eventual recovery using leveraged ETFs.
I use my discipline and steadfast faith in the future to stay the course until fiscal and monetary stimulus eventually moderates. At which point, I exit the leveraged ETFs and get back into a portfolio of diversified ETFs. And then I just carry on, waiting for the next bear market, waiting for the next accelerated wealth-building opportunity.
This is The Aqueduct Strategy. It is simple. It is sensible. It is transparent. It has a remarkable 10+ year record.
You owe it to yourself and your clients to evaluate it. Outsource a portion or all of your client’s equity allocation to The Aqueduct Strategy so you and your client can grow more wealth together.
Advisors can access The Aqueduct Investment Strategy (TAS) through the Fidelity Separate Accounts Network.