Asset Allocation and Diversification
Finding the combination to serve you better
We work with you to create a strategy that will serve as a guide in making investment decisions, sheltering your portfolio from excessive volatility. This includes a mix of stocks and bonds that represent different economic sectors, industries
and global economics.
Your diversification strategy or “asset allocation” will change over time depending
upon market cycles and your personal life events. Time and risk go hand in hand.
The Key: Balance
We believe stocks, bonds and cash should all play a role in your allocation strategy. Balance allows us to weather tough times. It allows
investors to participate in upside while dampening the negative effects of market
downturns.
Investable Themes
Our research is focused on analyzing and taking advantage of long-term investable
themes. In choosing securities, our goal is to understand where we are in the current
business cycle and to create a diversified portfolio of great businesses which fit
our long-term themes of strong revenue and profit growth.
Diversified by Geographic Exposure
We obtain exposure to growing international markets in two ways:
- Companies based outside the United States which are the best businesses
in their respective industries.
- Multi-national corporations headquartered in the United States.
Diversified by Capitalization
Our portfolios are diversified by company size or market capitalization, which means
we own big, medium and small businesses. Today, while somewhat more than half of
our stock holdings are in large capitalization companies, we are continuing to find
more investment opportunities in medium and small capitalized businesses.
To learn more about the services SVA Plumb Financial can provide for you, contact us at (888) 856-8801.