Asset Allocation

Planning for Success

All investments involve risk, whether the portfolio is managed as part of an active or passive strategy.  Passive investing does not “loss-proof” your portfolio.  What passive investing offers is style consistency, lower costs and tax efficiency.  All these factors allow the passive manager to build and maintain a diversified portfolio with the goal of managing risk.

Successful investing requires designing and maintaining a long-term investment strategy based on your unique needs.  Asset allocation is essential to that plan.  The strategy shifts the focus of investing from trying to pick winners to being invested in many unlike investments at all times.

No one knows what will happen to financial markets next week, next month or next year; but we still need to invest for the future.  In essence, asset allocation eliminates the need to predict the direction of the market and eliminates the risk of being in the wrong market at the wrong time.  Asset Allocation is not an exciting investment strategy, but when it comes to long-term investing, boring can be very profitable.