Under the title of the article it gives two picks of hers which are both energy related. Both names had been doing well year to date but are down low single digits since Thanksgiving.
Grandma did very well with this strategy for many years but, based on how the article is laid out, she has been taking the same risk the entire time, only now is there a consequence for that risk.
We’ve been looking at essentially this exact scenario for years here and this is a perfect example of assuming a lot of risk and potential volatility in a portfolio. Some of the Fredriksen stocks have been adored by investors and if you had 3,4 or 5% in one of his names at the start of the year you may not be happy with it but it is unlikely that your portfolio looks like Grandma’s does now (again I am making assumptions based on the Forbes article as published).
In making this point over the years about MLPs, commodities and other market segments there has been pushback if the thing I am writing about is doing well and agreement if the thing I am writing about is doing poorly but the risk is the same.
This article was written by AdvisorShares ETF Strategist Roger Nusbaum.