Satisfying the Prudent Man: Quantifying Risk per the Regulators

Although investment risk decisions made by professionals with fiduciary responsibility are aggressively examined and judged by regulators, strikingly absent from the Financial Industry Regulatory Authority (FINRA) Rules, the Employee Retirement Income Security Act of 1974 (ERISA), the Securities and Exchange Commission (SEC) Investment Advisors Act, and the Uniform Prudent Investor Act (UPIA) is any numerical or verbal definition of risk, or any guidance for determining how much diversification is sufficient. Fortunately, long-standing portfolio risk category definitions used by respected industry leaders have stood the test of time with regulators, and thus together form the basis for consensus definitions of conservative, moderate, and aggressive. The risk statistics of these accepted standard portfolios can then be measured and used as reference standards for assessing the risk of any other investment strategy or portfolio as judged by FINRA, ERISA, and the SEC.

We will review the process for creating the reference standards and then examine how Robo Advisors and SectorSurfer stack up against them.

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Introductory Materials:

The meeting's subject is an advanced topic. If you are new to SectorSurfer, please review the Introductory Materials below prior to the meeting to be properly prepared.

SectorSurfer Home (http://www.sumgrowth.com), everything you need to know starts here.
My Strategies Tour (http://sumgrowth.com/InfoPages/SectorSurfer-Videos.aspx?referralId=6944&videoName=StratsTour), short video - how the system works.
AAII Seminar (https://sumgrowth.com/InfoPages/SectorSurfer-Videos.aspx?videoName=Heresy), detailed video about True Sector Rotation.
True Sector Rotation Theory (http://sumgrowth.com/InfoPages/Sector-Rotation-Theory.aspx?referralId=6944), written background material.
Using SectorSurfer (http://sumgrowth.com/InfoPages/using_sectorsurfer.aspx?referralId=6944), browse topics, just know it's there.
Advanced Topics (http://sumgrowth.com/InfoPages/advanced.aspx?referralId=6944), browse topics, just know it's there.

Internet Streaming:
The meeting will be streamed live here: https://join.me/SectorSurfer . When you connect, you must also select how you will hear the meeting by clicking the phone icon. We recommend connecting audio via the internet if at all possible. When you do so, most systems will also ask your permission to use the speaker for that. We recommend trying to connect a few minutes ahead of time to be sure connection issues are resolved in time for the start of the presentations. See also note below.

Remote Participation
We have tried opening the audio up from strict Presentation Mode during the question session a couple of times, and let's just say it was always bad news for one reason or another (technical problems and excessive noise from folks who did not mute their microphones). So, we plan to keep the whole session in Presentation Mode and my wife, Erin, will monitor email questions sent in from remote participants and present them to me as they come in. We will put a note up on the screen indicating where to send your questions.