I was introduced to MarketHealth Case study by Professor Micheal Kraten to develop a case study for this particular start-up financial company. MarketHealth Inc. provides 401K investment advice by using a different approach from the current popular diversity strategy. Mr. John Bailey, CEO of MarketHealth, does his research on the stock market on a principle that keeps loss minimum in market downtrend and increases profit maximum in uptrend. The principle has been approved into a big success in the 2007-2009 economic crisis.
In the early of 2008, when most financial advisors still think investors should put more money into the 401k investment, Mr. John Bailey suggested that investors should reduce the contribution to the 401k, 100% pull-out. Although the MarketHealth 401k newsletter subscribers read the suggestions, most of them were held by the traditional diversity investment idea and didn’t follow Mr. John Bailey’s advice. As the Collapse of Bear Stearns, Bankruptcy of Lehman Brothers, Merrill Lynch is sold to Bank of America, in September 2008, Dow Falls 777.68 Points, which is largest One-Day Point Drop in History. At this time, the investors that took Mr. John Bailey’s advice, successfully avoid the loss while the investors that didn’t take his advice, lost their 401k investment dramatically.
Now in the focus group conference call, people that didn’t take his advice were regretted for their decision. Some of them are aggressively investors who tend to take more risk than other investors. That’s why that they made a failure in their investment when the economy got down. They want to make more profit anytime, but to most 401k investors, the security of not losing money is a key to guarantee a good retirement check. MarketHealth knows this point very well so that they use minimizing loss as the fundamental investment strategy. They helped many investors save their loss in the worst time and they are looking forward to help more people to make a safe 401k investment.
MarketHealth:http://markethealth401k.com/aboutus.aspx
