Your All-Weather PortfolioPrudent Investing in Post-Bubble Markets ...
Last year, stocks plunged the most since 1931, during the Great Depression. Diversification didn’t seem to help much either, since almost every other asset class lost money in 2008 as well, with few exceptions.1
Never before has our government committed such vast sums of money in a desperate attempt to stabilize the economy and financial markets. As a result of this crisis, we believe the investment landscape will be drastically changed ... and your strategy needs to change too ... but how? For starters, it helps to recognize that confusion and uncertainty reign supreme during periods of crisis. So it’s absolutely critical to stay focused on the likely consequences ... and the opportunities for prudent investors going forward. Now is the time to thoroughly re-examine the old conventional wisdom ... and perhaps change some long-held beliefs about investing.
Now is the time to discard old assumptions such as “buy and hold” ... and being “fully invested” at all times. These questionable strategies have once again failed investors during this epic bear market, perhaps leading to unnecessary losses of untold TRILLIONS of dollars. Blindly buying and holding when markets offer little long-term value could be a big mistake. On the other hand, missing out on prudent buying opportunities in attractive markets may be an EQUALLY big mistake. Nearly EVERY investor — including those already in retirement — should consider a carefully selected mix of high-quality investments, including dividend paying stocks, income producing bonds, and other alternative assets like commodity and foreign currency investments using mutual funds or ETFs. That’s because the right mix of securities ... pro-actively managed ... can provide you with the essential foundation needed to enhance your total return potential and help preserve your purchasing power over time. But there’s more …
An All-Weather Investment Strategy for Good Times & BadIn our view, the key to stable long-term investment returns is to be flexible and take a pro-active approach to investing. You have to start with the fundamental basis of controlling risk and the best way to do that is through diversification among truly different asset classes. But it doesn’t end there. When it comes to your core, long-term strategy ... you can’t just “set it and forget it.” You have to take a dynamic approach to rebalancing your portfolio and repositioning your investment mix as needed, to stay a step ahead of constantly changing markets. Most important, you DON’T always have to be fully invested. There are times when you need to scale back and invest less! And you’ll need to prudently “hedge” your portfolio to help protect your wealth from devastating market declines in the future. Finally, you’ll want to avoid risky, unproven strategies. There’s already enough volatility in today’s post-bubble markets ... don’t compound it by making risky bets. For most investors, seeking quick, overnight profits is just NOT a suitable goal ... and at Weiss Capital Management that’s not our goal either. Our primary goal is to earn a reasonable rate of return on investment without taking unreasonable risks* ... we think this should be your goal too! If so, it’s time for you to consider ... The Weiss All Weather Managed AccountWe believe the Weiss All Weather Managed Account may be the ultimate investment strategy you’ll need to help preserve, protect and potentially grow your wealth in today’s challenging markets. We have specifically designed this new strategy to be proactive, hedged, diversified and opportunistic ... to better manage your wealth through all market conditions. The All Weather Managed Account is a unique blend of TWO of our longest-running and most-successful investment programs: The Weiss Bear Strategy and The Weiss Balanced Program ... PLUS, an important third component that’s designed to add even more total return potential.
First, the Weiss Bear component helps protect your wealth against losses during bear markets. We use inverse funds specifically designed to go UP in value when markets go DOWN. The goal is to effectively hedge your investments from a devastating bear market decline in either stocks or in bonds. When we see troubled markets ahead ... we shift more money into the Bear component to help safeguard your wealth. Second, the Weiss Balanced component helps provide you with steady, and realistic long-term income and capital appreciation potential, using a diversified mix of securities across many different asset classes. The goal is to effectively maintain your purchasing power and capture potential gains as markets rise in value. When we expect strong markets ... we shift more money into the Balanced component to give you more growth potential. Third, the final component is perhaps most important of all ... because this is where we go beyond a static blend of existing strategies, with the goal of being even more dynamic and responsive to ever-changing market conditions. We set aside up to 15% of the All Weather Managed Account to invest in targeted “special situations”... including alternative asset classes such as mutual funds or ETFs that invest in commodities, foreign currencies, real estate and other non-traditional securities. We call this our “best ideas” component. These are targeted, tactical investments that appear to be especially attractive to our Weiss Investment Committee.
A Great Opportunity to Put the Weiss All Weather Strategy
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Never in our lifetime have we seen so many former blue-chip companies driven so quickly to the brink of bankruptcy. 
It’s time to consider a new strategy that’s designed for the new realities of investing in post-bubble financial markets ... 
Grow your wealth in bullish markets ... and designed to protect those gains when markets take another turn for the worse.
