OUR PHILOSOPHY

There are only four possible investment outcomes, and three of them are favorable. They are: (a) a substantial gain, (b) a modest gain, (c) a modest loss, and (d) a substantial loss.

Everyone prefers gains—the larger, the better. However, a modest loss can also be highly beneficial.

Taking a modest loss enables an investor to pivot to a more productive asset. It also helps offset taxable gains in brokerage accounts.

The most compelling reason a modest loss is so valuable, though, is that it helps avert a catastrophic loss. The “big loss” is the only truly negative investment outcome.

Consider this: If you could minimize the impact of major bear market declines, wouldn’t you?

At Pacific Park Financial, we avoid chasing high-risk “home run” investments. Instead, we use a tactical approach to asset allocation and risk management. This process is designed to reduce exposure to severe bearish downturns.