What is the most important element of portfolio construction?
Asset allocation is key to successful portfolio construction—even more important than fund selection. By constructing a diversified portfolio, one in which not all the assets rise and fall simultaneously, we can reduce the roller coaster effect that has become so commonplace with many portfolios. Our approach to investing is simple: we construct asset allocation targets that are specific to our clients risk tolerances and investment time horizons; we utilize no-load mutual funds with reasonable expense ratios, stocks, bonds, REITs, and other investment vehicles as appropriate; and we invest for the long-term.
