What Can The Crosspoint Approach Do For A Portfolio?
S&P 500 Drawdowns Since Great Depression
1932
-86.2%
1935
-40.6%
1938
-31.8%
1939
-54.5%
1940
-26.2%
1942
-31.9%
1946
-34.5%
1949
-26.6%
1957
-20.6%
1962
-20.7%
1966
-28.0%
1970
-22.2%
1974
-36.1%
1978
-48.2%
1982
-19.4%
1987
-27.1%
1990
-33.5%
1998
-19.9%
2002
-49.1%
2009
-56.8%
2011
-19.4%
2018
-19.8%
2020
-33.9%
2022
-27.5%
2025
-18.8%
Source: Data collected from FactSet. Date represented on chart marks the bottom of the drawdown.
At Crosspoint, we understand that life is not lived in 30-year increments. A forward-looking chart demonstrating long-term wealth accumulation doesn’t demonstrate the traumatic experience of having years of life savings eliminated in a matter of weeks. At times when opportunity might be greatest, an investor’s psyche may be completely broken.
By focusing our data-driven, rules-based approach on capital preservation as well as long-term compounding, we can aid any portfolio in avoiding the pressure and consequences of emotional investing.
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Preserving Capital During Market Downturns The market endured a staggering draw-down of 55% in the S&P 500 from October 11, 2007 to March 9, 2009. This means that S&P 500 needed to generate a return of 122% to recoup all of its losses. These types of major market downturns can put investor goals significantly off-track, including delaying retirement plans. At Crosspoint, our strategies adhere to principals of capital preservation, allowing us to grow investor capital from a much higher base after major market downturns, instead of needing to recoup heavy losses |
