Diversification

The goal of diversification is to improve the probability of success for your investments, regardless of economic and market conditions. Choosing the right mix of investments and then periodically rebalancing and monitoring your choices can make a big difference in your outcome.

We believe that you should have a diversified mix of stocks, bonds, and short-term investments, and should diversify your portfolio within those different types of investments. Setting and maintaining your strategic asset allocation are among the most important elements for long-term investment success.

The value of a diversified portfolio usually proves itself over time. Many investors don’t realize their maximum investment performance potential because in rising markets people tend to chase performance and purchase ‘popular’ investments, and in a market downturn, they tend to move to lower-risk investment options. These behaviors can often lead to missed opportunities and reduced investment returns.