The Four Outcomes
There are only 4 outcomes that you can experience as an investor: (1) a big gain, (2) a small gain, (3) a small loss and (4) a big loss. Three of the outcomes are good!
Intuitively, investors understand that gains are good… the bigger, the better. Yet the small loss is one of the most powerful instruments in your toolbox.
A small loss gives you an opportunity to exchange an underachiever for a super-sized performer. In addition, small losses can offset gains in a taxable account, lowering the overall taxes you have to pay.
Still, the most important reason to embrace a small loss is to avoid the big loss. You can ruin everything you’ve tried to achieve with one big mistake, just as sure as one bad apple spoils the whole bunch.
At Pacific Park Financial, we do not let one apple spoil your basket. When the markets are moving lower, we act to reduce your downside risk.
Think about it. When do you really need the experience and expertise of an investment adviser? Have you had a lot of trouble when investment markets were climbing? Or have you had the most trouble keeping your money and keeping your wits when the markets were falling?
Pacific Park offers a unique understanding of how and when to sell. Naturally, we’re skilled at knowing which assets to buy and when to acquire them. Nevertheless, what sets us apart is our dedication to managing downside risk.