Investment Management is My Portfolio Guide’s core business. We believe that Investment Management boils down to the understanding, management, and mitigation of risk.
HOW WE MANAGE INVESTMENT RISK:
Asset Allocation is the dominant factor in determining total portfolio return. Studies prove that over 90% of a portfolio’s variability of return is the result of asset allocation decisions.
Asset Allocation is the deceptively simple yet critically important process of allocating your money among (and within) asset classes, such as stocks, bonds, and cash. However, this theory doesn’t mean you simply “buy and hold/forget”. Your allocation must adjust over time according to your goals, the overall investment environment, and dynamic financial markets.
Our unique tactical approach to Asset Allocation allows us to maintain both a broadly diversified portfolio and the flexibility to adjust the portfolio in light of changing market conditions.
Broad Diversification: Your portfolio will be diversified among stocks, bonds, money market instruments, international securities, and alternative investments. If mutual funds are part of your existing portfolio, every holding will be analyzed and assessed for proper diversification and fees that each fund charges.
Comprehensive Approach to Portfolio Management. We will consult on your brokerage, IRA and other accounts as a single, integrated portfolio. Each account may have a separate goal but your entire portfolio as a whole needs to be intelligently managed without creating unnecessary duplication.
Continuous Management: Your portfolio will be managed in light of changes in the global investment environment, financial markets, and changes to your individual goals and objectives.
Management Process: Successful investing is a management process and not “independent purchase decisions made over time”. In other words, most individual investors think of investing as a purchase decision and consequently purchase investments at different times, under various market conditions, and for different purposes. Investors typically end up with a “garage sale” of uncoordinated stocks, and mutual funds… but no real strategy tying it all together. True investors do not simply “collect” different stocks or funds.
Sell Discipline: One of the most difficult things to do in investing is to sell. Any investor can buy a great stock or mutual fund. Very few, however, know when to cut their losses or when it might be appropriate to take some profit. Boilerplate pie charts or completely passive investment programs never guide an investor as to when it might be appropriate to “tap the breaks” in a certain area.
Constant Monitoring and Supervision: We guide you and your investments, with periodic and proactive adjustment of your portfolio’s Asset Allocation in anticipation of the dynamic changes in the global financial markets.