EQUITIES:

The key thing to remember is that investment markets are cyclical and unpredictable. Your instincts would tell you to abandon small stocks when they drop below your comfort level, but knowing that these stock cycles go up and down, your wise choice would be to stick with the market and wait for an increase. If you jump ship before the stocks rise, you lose the benefit of riding out the storm. We've all watched the market go up and down during tech crashes, economic hardship and natural disasters. It's better to be prepared to weather the storm with any type of market possibility.

DIVERSIFICATION:

A diversified portfolio is more than a collection of "lots of stocks". It is important to know and understand the difference between a large quantity of stocks and the quality of diversified stocks. You might own a dozen mutual funds but if each mutual fund holds the same set of stocks, it hardly constitutes a diversified selection. Because individual stocks are more volatile than previous years, it's crucial to have a combination of large US stocks, small US stocks, international companies and government bonds. By combining different options, the risk can decrease because each option will go up and down at different times.

REBALANCE:

Easy to say - hard to do. Everyone wants to keep the winners. However, isn't the key to making money - sell HIGH buy LOW. Unfortunately most investors fail miserably at this basic yet hard task. Working together, this process is a critical part of the success of your portfolio and we perform this task for you in a disciplined systematic manner that is consistent and predictable so you can be assured the hardest yet most basic task is taken care of.