Vision Capital Venture, Ltd.
The master cycles of the financial markets dictate that there are windows of time that open and close in each financial sector, be it
technology, consumer categories, retail, transportation, utilities, construction, real estate, precious metals, bonds, crude oil, currencies, etc. There is no one place in which your opportunity is guaranteed safe or trending positively at ALL TIMES!! REWARD must also be considered in terms of RISK.....all the time!! It just does not happen any other way.
Frequently, passive resource management and growth opportunities are sold as 'buy and hold' for the long-term. This is to suggest that the positive trend of a market sector has some coincidental and positive correlation with your short, medium and long-term goals. It just doesn't happen that way. Buy and hold has it's merits, at times, however, the market doesn't care about YOUR time frame.
Example - a person in their 50's is advised to place their resources into safe, low-yielding resource categories, to preserve their capital in preparation for their leaving the work force. Unfortunately, this person is given this advice during the 1990's, during the biggest equity bull market in three generations. Single digit and safe returns are good for sanity and security, but, double-digit returns are rare and must not be overlooked when they appear. A once in a lifetime opportunity to maximize a portfolio is lost, due to an age-based recommendation for safety of assets. This is the very essence of so-called 'lifestyle' funds.
Example - a person in their 20's or 30's is advised to use aggressive placement of their financial resources, into the equities market, due to trends that were recently established. Unfortunately, this person is given this advice in 2002, during one of the worst equity bear markets in three generations. Loss of capital, even to someone in their 20's or 30's, denies near term opportunity for other possibilities, and leaves this person dependent on a major advance in market returns, just to recoup double-digit losses that were incurred suddenly, based upon faulty assumptions of the previous 5 or 10 years. For the next decade, in general, equity returns are range bound, while opportunities elsewhere are missed, due to a lack of focus. This is the very essence of 'conventional wisdom.'
Example - a rare opportunity is revealed in 1999-2000. The balance of stock market prices levels when compared to levels from key commodities is a historic extreme. Oil prices and precious metals prices are at 70-year lows on an inflation-adjusted basis. The best strategy is to recover all gains from stock positions, in spite of talk of a 'new era', and purchase long-term positions in gold, at $260 per ounce, crude oil, at $20/barrel, and allow the markets to adjust back into their proper relative positions. Once again, a once-in-a-lifetime opportunity is at hand. This is where awareness of history, and fundamentals, creates outstanding opportunity.
We recognize opportunities just like these with a variety of extremely long-term strategies and techniques, as we stay away from the sway and deception of short-term events that are designed to keep you at a disadvantage, while others 'in-the-know' leave the average planner or investor seeking answers that have not yet revealed themselves to the masses.