Kim Githler is president and CEO of the Money Show. She made the opening remarks for this Toronto Money Show of 2012.
Kim opened with the remark that there are almost 11M high net worth individuals worldwide. High net worth individuals are those that have $1M plus. Most of these individuals (HNWI) are doing fine in this economy.
She also talked about how large losses can be damaging to you portfolio and the fact that losses count more than gains. If you lose 57% of your portfolio, you have to have more than a 100% gain just to make up this loss. In retirement such large loses can be devastating.
She talked about secular market cycles. A secular bear market can last for 12 to 25 years and a secular bull market can last for 10-15 years. We are currently in a secular bear market. She talked about reading Ned Davis's research into cycles. His site is here. You have to subscribe to get information there. However a recent paper by Baird uses some of Ned Davis's charts. There are lots of people who quote Ned Davis.
She said that you have to fight to protect your portfolio in secular bear markets. In these markets alternative investments give better returns. Alternative investments would be gold, minerals and resources.
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