An Investment Strategy for a Diversified Portfolio
Asset allocation is an investment strategy designed to create a portfolio of diversified asset classes that seeks to maximize potential returns for a given level of risk. A diversified portfolio of low-correlated asset classes seeks to provide resilience to market volatility as the movement of individual positions has less effect on the overall performance of the portfolio.
Strategic Asset Allocation
A long-term investment strategy, strategic asset allocation creates an optimal blend of asset classes while placing little emphasis on short-term market fluctuations. When constructing a diversified portfolio, many investors implement strategic asset allocation as a means of working towards their investment objectives.
Managing Volatility Through Asset Allocation
With investing, as with any endeavor, certain risks are inherent. The goal of asset allocation is to decrease risk without substantially reducing overall performance. By constructing a blended portfolio of asset classes whose individual performance through different market cycles does not move in unison, investors are better positioned to weather any potential volatility.
Your Investment Goals
A well-balanced, diversified portfolio is the cornerstone of portfolio management. Through an in-depth interview process taking into account your financial position and future objectives, we will help you construct a diversified portfolio with a customized asset allocation.
The asset allocation of your portfolio is an ongoing, dynamic process. As your investment and life goals change, so will your portfolio. A well-devised and executed asset allocation strategy can help you weather the investment cycle and work towards your goals.
Whether you are planning your retirement, investing for a child’s college education or financing a new business, you will need a strategy to get you from where you are today to where you would like to be tomorrow. The philosophy of strategic asset allocation may be just the strategy to get you there.
Michalek Brothers help you pursue your financial objectives by creating a comprehensive customized portfolio, consisting of stocks, bonds and exchange-traded funds. Working together, we devise and implement a portfolio management strategy based upon the tenets of asset allocation and diversification. Periodic reviews of the portfolio’s composition and performance can help to ensure your assets are positioned to take advantage of market opportunities, while offering the potential to withstand market volatility.
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification and asset allocation to not guarantee a profit or protect against market risk.