The Financial Planning Hour

Wednesday, March 20, 2013

Rick Parkes Financial 3-20-13

Rick Parks answers your financial questions.

MP3 File


  1. Why Buy High + Sell Low? Rick claimed that he sells out of his funds every time the market falls 5%. That happens more than twice a year on average. On three different occasions in 2010 the market fell 5%, twice in 2011, and twice in 2012. If Rick sells out of his investments on every 5% pullback, he's locking in 10% losses every year. Selling at the market lows. Rick claimed he used ETF's. Most ETF's are even more volatile than the broadbased market, so the losses would be locked in even more often. Why lock in constant losses at the market lows several times a year? 5% declines in ETF's happen all the time. This strategy rarely ever works.

  2. Rick,
    What ETF's are you using? It won't be hard to calculate the losses in your strategy of constantly locking in 5% losses. Why do you want to buy high + sell low?

  3. Fantastic blog you have here. You’ll discover me looking at your stuff often. Saved!