Why Investors Shouldn’t ‘Buy the Dip’

Macro market risks, which were being ignored by investors, are becoming quite evident. Still overlooked, we feel, is the level of government debt that has piled up as economies struggled to fight off financial contagion. Economics 101 would suggest the tremendous debt burden incurred to keep financial systems functioning is a drag on economic performance even at extremely low interest rates. It's clear to see these effects in China, Brazil and Russia as slow world growth compresses commodity prices. In the U.S., debt levels soared by 250% to prevent the 2008 Financial Crisis turning into a depression. We believe the low 2% growth rate is a clear expression of the drag $18.5 trillion of debt is having on the economy.

We would strongly suggest that investors should not "buy the dip" because macro and market risks remain elevated. We are not out of the woods yet by a long shot. When markets' prices are reverting to mean value from overvalued levels, we believe "cash is king" and the safest way to protect capital. WBI's process systematically raises cash as market risk increases to protect capital. When market conditions indicate risk is abating, our process will seek to become more fully invested to participate in positive market returns.

— IMPORTANT INFORMATION

Past performance does not guarantee future results.

The views presented are those of Don Schreiber, Jr. and should not be construed as investment advice.

All economic and performance information is historical and not indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly in this document, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio. WBI Enhanced SMA Program accounts are subject to investment risk, including the possible loss of principal amount invested. The ETFs used in WBIEnhanced SMA Program accounts may invest in other ETFs, mutual funds, and Exchange-Traded Notes (ETNs) which will subject the account to the additional expenses of each ETF, mutual fund, or ETN, as well as to the risk of owning the underlying securities held by each. Options on securities held in an ETF may be subject to greater fluctuations in value than an investment in the underlying securities. In addition, ETFs may be subject to one or more of the following risks: market risk, model risk, management risk, dividend risk, growth risk, value risk, debt security risk, foreign market and currency risk, high-yield security risk, small and medium company risk, portfolio turnover risk, securities business risk, mortgage-backed securities risk, new fund risk, and trading price risk. Moreover, you should not assume that any discussion or information provided here serves as the receipt of, or as a substitute for, personalized investment advice from WBI or from any other investment professional. To the extent that you have any questions regarding the applicability of any specific issue discussed to your individual situation, you are encouraged to consult with WBI or the professional advisor of your choosing. All information, including that used to compile charts, is obtained from sources believed to be reliable, but WBI does not guarantee its reliability. Information pertaining to WBI's advisory operations, services, and fees is set forth in WBI's current disclosure statement, as same is on file with the United States Securities and Exchange Commission, a copy of which is available from WBI upon request.