Phil Cannella has been preaching for some years that stock market risk is a risk that retirees should remove from their portfolios. While younger investors still have time ahead of themselves, older investors who are preparing to or have already left the workforce do not have the time to wait to recover from another market crash.
Phil Cannella urges seniors, retirees, and even those approaching retirement to take a good look at his proprietary Crash Proof Retirement System and, through it, find alternative investment vehicles that can provide reasonable growth while eliminating all market risk. That is the exact system Phil Cannella created and through First Senior Financial Group he offers solutions to market volatility.
A case in point is the biotech sector, which has seen amazing growth for many years and has been viewed as a “safe” harbor for many investors who have enjoyed the returns they have been getting from these stocks. Yet even these stocks have taken quite a hit and caused panic among investors recently.
A great article in Bloomberg commented on it well:
“The S&P Biotechnology Select Industry Index fell nearly 5 percent to start the week [September 28], as drug price increases undergo major scrutiny. The downward move follows a run-up that has seen the index jump, from 1,040 back in September 2011, to 4,110 at the end of June this year—an astonishing 295 percent increase. Bespoke Investment Group points out that Monday’s fall marked the seventh straight day of losses for the index, putting it down more than 20 percent from its recent high. The industry has a history of volatility, but the recent decline has been quite steep, even by its own standards.” – Bloomberg
Phil Cannella tells us again and again that the market is no place to put all one’s retirement savings. One has to have some assets diversified out of risk and in places where one’s principal is protected.