New Registered Investment Advisor Launches Aimed at Helping Investors Avoid Recessions

At Prepared Capital, we want to protect the wealth of our clients, and if history is any guide, we have a great chance to do that should the market decline during a recession.

Prepared Capital, a new Registered Investment Advisor (RIA) has launched in Los Angeles. Offering the convenience of a Robo-Advisor, with the personal care and attention of a financial planner, Prepared Capital’s goal is to help investors better prepare for retirement by helping to avoid losses during recessions, while also maintaining low costs.

Founded by Phillip Argue, who left his management role with Morgan Stanley in April, Prepared Capital has been a vision for several years.

“The last two recessions hit my loved ones hard,” says Argue. “During my nearly 10 years at Morgan Stanley, I devoted much of my spare time to understanding business cycles and recessions, in a hope that I could protect my family from re-living the same painful experiences of the past. I found that while every business cycle has different characteristics that make them unique, they also have many similarities. By combining a number of economic indicators, I created a proprietary Business Cycle Indicator, which if it had existed, would have predicted each of the last seven recessions.”

Argue’s research determined that since 1900, recessions have occurred every four years, with an average stock market decline of 32.5% during each recession. While the passion for his research was born out of self-preservation, Argue quickly realized that his work, combined with it now having been more than eight years since the last recession, can significantly help others reach their own financial goals.

With the wealth management industry quickly moving towards more digital offerings, Argue fears many investors are placed into static ‘set it and forget it’ investment models.

“I fear that when this business cycle ends, many investors are going to be very disappointed,” says Argue. “At Prepared Capital, we want to protect the wealth of our clients, and if history is any guide, we have a great chance to do that should the market decline during a recession. Our straight-forward investment discipline provides superior long-term results by helping our clients avoid the…

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