Past performance is not an assurance of similar future results. It should not be presumed that current or future recommendations will be profitable or will equal or exceed the returns of past trades. Money invested in the stock market is risk capital that can be lost.
SweetSpot Investments (SSI) is a publisher of investment data and research, and is not a registered investment adviser. Subscribers are responsible for their own investment decisions. Information that SSI provides to subscribers does not constitute a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. To the extent that any such information may be deemed to be investment advice, it is impersonal and not tailored to the investment needs of any individual.
SweetSpot’s reported track record relates to trades that were entered and exited in real time on the dates indicated. All reported returns, both gross and net, assume the reinvestment of dividends and other fund distributions. Gross returns show SweetSpot’s record in identifying investment candidates compared with buying and holding a representative-market-index fund. Net returns show what an investor would have earned after a hypothetical one-percent annual advisory fee is deducted. Reported returns do not reflect the effects, if any, of material market or economic conditions on trade sizing or intra-trade activity that may have affected actual returns for better or worse.
Discussion of Material Risks
Stock investing entails a risk of loss that subscribers should be prepared to bear. Simply put, money invested in the stock market is risk capital that can be lost. This is true no matter how promising or well-supported any given investment strategy may be. SweetSpot investors in particular assume certain risks beyond those borne by other stock investors:
- SSI trades a global portfolio that, by definition, includes positions in foreign markets. Such markets can be especially volatile; they may present political, economic, and currency risks; and they are often subject to lax accounting standards that can make actual valuations difficult to gauge. These risks are even greater in the emerging-markets segment of foreign markets.
- SSI trades “abandoned” sectors that were abandoned for a reason. Subscribers face a risk of loss stemming from the possibility that the pessimistic view of a given trade will ultimately prevail.
- An arithmetical formula informs trading decisions. Although SSI conducts a substantive review of the formula’s outputs, subscribers face a risk of loss from undetected confounding factors.
- Past performance is not an assurance of similar future results. It should not be presumed that SSI’s current or future recommendations will be profitable or will equal or exceed the returns of past trades.
There is no such thing as a risk-free investment. SweetSpot subscribers invest for the long term, and they diversify their holdings across many asset classes. These include but are not limited to: domestic and foreign stocks; bonds; real estate; commodities; precious metals; and alternative investments such as actively managed multi-asset funds that have the flexibility to take both long and short positions based on market conditions.
Still, even a broadly diversified portfolio may not provide reliable insurance against the risk of loss, especially in the short term. Historically, diversification has tended to fail investors at the precise moment when the need for protection became most compelling. Accordingly, a healthy allocation to cash – even (or especially) when cash offers piddling rates of return – should be a part of most investors’ portfolios.
For more information, contact us.