Witter & Westlake Investments

To successfully build wealth throughout your lifetime, your investment strategy must safely compound annual investment returns and avoid tax generating transactions.

This century has shown us that the two most widely used investment strategies are now obsolete. Buy and hold is an outdated strategy because your investment has the potential to decline 50% and it takes far too many years to get back to even. The stock market has declined over 50% twice this century.

Diversifying your portfolio is not a viable strategy because asset correlations are unreliable. This is especially true in an environment of ultra-low interest rates.

Hedging the S&P 500 index is the wealth management strategy for the 21st century. It is designed to minimize losses, not maximize gains. It is far more important in building wealth to control losses than to capture all the gains of an index.