WITH A DIFFERENT ALLOCATION STRATEGY?
THESIS: Portfolios with a higher allocation to alternative investments (like Prospera) tend to perform better, correlate less with the market and resist volatility.
First, let’s observe what $1M looks like over the past three years and in recent weeks, both allocated to the market (Using DJIA) and then in Prospera/CPC.
100% Market Allocation
(Gross)
100% Prospera/CPC Allocation
(Net)
Next, let’s look at a 30% allocation to Prospera. Many investors take this minimum approach to hedge against the volatility and downside of the market.
70% Market Allocation
(Gross)
30% Prospera/CPC Allocation
(Net)
Imagine an even larger position in high-performing alternatives like Prospera. Here’s how 70% in Prospera/CPC looks with a supplemental 30% in the market.
30% Market Allocation
(Gross)
70% Prospera/CPC Allocation
(Net)
CONCLUSION: A larger allocation to non-correlated alternative investments (like Prospera) typically generates a much higher yield with far less volatility.
The Dow Jones Industrial Average is used as a comparison index in representation of the market in these graphs, but if you overlay the S&P 500, any other major index, or really any stock– you’ll see very similar peaks and valleys. Also, the GROSS returns in the market are compared to the NET returns in Prospera/CPC. In the first comparison, using gross numbers, there is more than a MILLION DOLLAR DIFFERENCE between the market losses through March 23rd and the gains in Prospera through the same date.
So, were those gains in the market through 2017 and 2019 and at their highest level February 12, 2020 REALLY gains if you didn’t time the market right? And if you’ve lost that badly, will you ever recover? Of course it will. In fact, with a shred of good news in Washington, the markets had their best day since 1933 on March 24th, giving investors a chance to earn back some of those losses. But you’re still not back to even principal.
The jobs report on March 26th may have an adverse effect yet again. Whether the market comes back or drops again now or over another cycle, it will happen! You can earn losses back faster with an allocation to Prospera.
You can offset additional losses with an allocation to Prospera. And you can beat the market even when it rallies with Prospera. Stop trying to guess when the lowest dip will be. These vehicles are more consistent, primarily because they are backed by tangible real property. Corporations and analysts have already projected no gains, and hopes to abate further losses in 2020. But they’re talking about the market.
Prospera is projecting a first quarter on par with what its investors have come to expect since the last major financial crisis when its funds were founded.
* This is not a solicitation for investments. Past performance is not a guarantee of future results. Investment decisions are made through review of the Private Placement Memorandum(s). Results illustrated are blended between offerings, which included actual net investor returns as well as speculation on projects that have yet to conclude. All investments are subject to risk, including a loss of principal.