Do you have money and wonder the best way to invest it? Maybe you've saved into your pension or retirement fund, or have inherited some money? Or you're looking for alternatives to buy-to-let rental property investment? It really boils down to this question:
What should I buy with the money in my ..... ?
I keep getting asked variations of this question by my friends and family, whether it's for their ISA, Roth IRA or Pension Fund. They ask me because they know I have tried almost every type of investment strategy over the last 30 years, and I know which ones really work through market booms and crashes.
Now I just point my friends to this website.
What are the strategies?
The key objective of investment is to ensure the maximum amount of wealth when you need it. And that's exactly what these strategies do. There are two strategies, because as with any investment, there is always a balance between maximising returns in the long term and risking a downturn in the short term, so dependent on how soon you need the money, one may be more suitable than the other.
Strongest Trending Assets Globally (STAG) is designed for money not needed for at least five years, and gives outstanding long term returns.
Wealth Without Worry (WWW) has given the most robust protection I have ever seen - from pretty much anything you can throw at it, including market crashes, popping bubbles, rampant inflation and bank collapses. Way steadier than the stock market, but with similar returns. In its worst down year (1981) it lost 7% - compare this with the stock market losing 37% (2008). I use Wealth Without Worry for savings I might need in 1 to 5 years - for instance helping my children through university.
I have separated out the UK and US strategies so investors in the US only hold US listed funds priced in US Dollars, and UK investors only hold funds available on the London Stock Exchange priced in British Pounds. You'll notice that in the charts on this site, the UK goes back less far in time. This is because there were no funds or data available in the UK to run the strategies before the first dates shown on the charts.
What do they hold?
The strategies only hold large, liquid ETFs (Exchange Traded Funds) that track broad asset classes such as stock indices, bond indices, or gold (i.e. mainstream assets that will never go to zero). They can be traded in any brokerage account that allows trading of stocks, and ETFs - I can't think of any brokerages that don't.
You'll only need to hold a maximum of four different ETFs at any time (except the STAG system for US investors, which holds ten).
How much work do they require?
STAG has required less than one action per month over the 50 years I've tracked it.
Wealth Without Worry has required less than two actions per year over its history - most people can manage it in less than an hour per year.
This is a strategy with outstanding returns (13% compounded annually for 50 years) and yet less risk than investing in the stock market.
Like the stock market, it has had rare periods where your wealth would not have grown for a few years if you'd had bad timing and invested just before a market downturn - for example in the year 2000. That is why I only use this for funds I won't be needing for at least five years.
US STAG - $10,000 invested in 1969 to present
UK STAG - £10,000 invested in 1996 to present
This is a strategy with extraordinary robustness. It is designed to perform in all economic environments, and to ensure diversified assets at all times for safety. Just check the charts below to see how it performed in 2000-2002 and 2007-2009 (when the stock market halved in value both times!).
It performed really well in the high inflation of the 1970s too. You will struggle to find any fund manager that can say that because traditional stock and bond based strategies get killed in high inflation environments. Wealth Without Worry lived up to its name and just drove on up. You can't really see it on the chart below, but in the worst five years during that inflationary period (1973 - 1978), WWW rose by 64%. The US stock market lost 7%.