An Essential Part of the Investment Process

The number and variety of investment choices, or asset classes, keeps growing all the time – U.S. stocks, international stocks, U.S. and international bonds, emerging markets, ETFs, REITs, hedge funds – the list goes on and on.  Each market and each segment has different characteristics, return potential and risks.

BLRS believes that a division of assets is only the beginning of the asset allocation story.  Financial success and investment risk management requires further diversifying the portfolio structure itself.  For example, the U.S. stock market has four distinct sub-classes: large cap value, large cap growth, small cap value and small cap growth.  For the best chance at success, your portfolio should be diversified across as well as within these asset classes.  In other words, you shouldn’t just own “stocks” but also make sure you have the right mix of large and small cap, growth, value and international or even alternative investments.

BLRS can help you make sure this discipline is exercised across all of your accounts and all asset classes involved.

Is Your Portfolio Properly Diversified?