CMG Capital Management Group CEO Steve Blumenthal appeared on Josh Jalinski’s Financial Quarterback show to talk about the markets and investing. The Financial Quarterback Show can be heard every Saturday on WOR 710 AM (New York) from 9am to 11am and Sunday from 9am to 10am.
Steve is on the show for the full hour. He covers many topics, including how his weekly newsletter On My Radar evolved, what could lie ahead for the markets, and what he believes are the most important lessons for advisors and individuals to learn about investing. Listen to the segment below or on the WOR 710 web site. An excerpt:
It’s most important in long-term investment planning to protect your downside principal. Fortunately, there are many ways to do that. Portfolios can be combined with a lot of different asset classes that can minimize risk. The biggest lesson is to understand how money compounds. Often times, after rallies, we ignore risk. Most people don’t realize that if you lose 20% of your portfolio, you need a gain of 25% to get back to even. If you lose 50%, you need 100% to get back to even. If you lose 75% you need 300% to get back to even. That’s the math.