At Highs, But Risks Still Exist

Matthew Allgood |


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  • The S&P 500 has surpassed its previous all-time high, and our fully invested models have successfully capitalized on this rally.
  • As we have seen, historical trends in the S&P 500 have shown significant drawdowns exceeding 50%.
  • Our RiskFirst® process is designed to be mindful of these patterns, with the goal of managing downside risk to stay in line with our client's financial goals.


At Highs, But Risks Still Exist

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Source: Bloomberg, Redwood. Data as of 2/20/2024. Date Range from 1/1/2000 – 2/16/2024.


  • We believe capital preservation is key to consistent, long-term investment success.
  • Our investment approach is grounded in economic theory and backed by quantitative analysis.
  • Managing drawdown risk is a pillar from which we build our portfolios.



Allgood Financial

Disclosure: This piece is for informational purposes only and contains opinions that should not be construed as facts. Information provided herein from third parties is obtained from sources believed to be reliable, but no reservation or warranty is made as to its accuracy or completeness. Charts and graphs are for illustrative purposes only. Discussion of any specific strategy is not intended as a guarantee of profit or loss.  Past performance is not a guarantee of future results. The objectives mentioned are not guaranteed to be achieved. Investors cannot invest directly in any of the indices mentioned above. RiskFirst® is a registered trademark of Redwood Investment Management, LLC.


Index: S&P 500 Index is a stock market index based on the market capitalization of 500 leading companies publicly traded in the U.S. stock market, as determined by Standard & Poor’s.


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