How Do You Spell Conservative?

 

Do you remember the old commercial from the 1970’s that was put out by Johnson & Johnson at the time?

Johnson & Johnson had a stomach acid reducing product called Rolaids. And Johnson & Johnson’s advertising around the product was, “How do you spell relief?”

And the answer was of course R-O-L-A-I-D-S.

It was clever and I still remember it, even though I was only five when the commercial started airing on TV.

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Fast forward to today, change stomach acid reduction to “capital loss reduction” and ask the same question… but this time ask yourself, “how do you spell conservative portfolio”?

Not conservative in your political leanings but how someone might describe their investment approach… like “I am a conservative investor.”

Which usually means they want to lower their price volatility.

But what if they were doing the exact opposite?

What if conservative investors were spelling conservative with words and terms that were actually inviting more price volatility and capital loss into their lives and not out?

This issue might be good to know right?

I’m noticing a dangerous and scary trend that may just be the one thing that brings explosive volatility into the exact portfolios of people who can handle it the least… people over the age of 55.

You can get access to this weekend’s podcast right here.

In Your Corner,

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RC Peck, CFP  

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