|
Goals
|
Stock
Market
|
Potomac
|
| Capture on average 80% of the gain during
market advances |
Value of investment in stock market if
increase was 100% would be $200,000 |
Potomac captures 80% of market rise account
value would be $180,000 |
| Limit losses to no more than 20% to 50%
of stock market decline |
Value of investment if market declined
by 50% (50% of $200,000 is $100,000 decline)
new value would be $100,000 |
Potomac limits losses to 50% of 50%, i.e.
25% (25% of $180,000 is a $45,000 decline)
new value would be $135,000 |
| Grow investment better than buy and hold |
Final Account Value $100,000 |
Final Account Value $135,000 |