82 • MARTIN H. RUBY
the long run. So during the Great Depression, everyone else was losing their wealth when the market dropped. But you, with your indexed account, just got zero percent interest that year. No big deal. And the next year, you started growing again from a positive position. This is why I love the concept of indexing. What do others say? The Money Manager I have a client by the name of Will, who is one of the smartest financial guys I know. Before he retired, he managed billions of dollars in institutional pension funds. Essentially, it was his job to grow enough money for a company to pay everyone their pension. Indexing piqued his interest. But, of course, he wanted to run his own analysis on it. So he back-tested indexing in numerous historical periods. How would it perform when the market was down, up or on a roller-coaster ride? What about in times of slow growth? Fast growth? When we sat down one January afternoon, he set a ream of pa- per on the table, heavy enough to make a “thud.” This was his anal- ysis. I asked him what he had determined, and here’s what he told me: “Marty, the return pattern in this product is so unique, it’s un- like anything else in my portfolio. I think everyone should own an asset like this.” Translation into non-money-manager speak? The balance of protection and growth is unlike anything else. Everyone needs to take advantage. Pretty high praise from a guy who was used to working with the stock market. Now you see why.
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