Many investors believe trying to “time” the market and picking the next “hot” investment are the keys to success in reaching their investment goals. The financial media, and some investment companies, perpetuate this myth. For example, financial magazines and rating services frequently publish ever-changing lists of top-performing mutual funds and money managers. Many investors turn to these publications for guidance; unfortunately, these rankings are backward-looking and cannot predict future success.
The most important step in the investment process is the first step – deciding how to allocate your money among broad asset classes such as stocks, bonds, cash, etc. This process has come to be known as asset allocation and BLRS spends a lot of time in this area with the clients we serve.
BLRS is aware that, when it comes to taking risks, we each have our own comfort zone. Therefore, your asset allocation decision is the outcome of a unique behavioral finance profiling process by which your personal objectives and feelings are carefully defined, and then aligned with multiple investment strategies built using various assets. The end result is a diversified and cost-efficient portfolio where the risk/return potential is quantified.
Is Your Asset Allocation Appropriate For Your Objectives?