Modern Portfolio Theory

balanceWe believe that individual stock picking and market timing are not a consistently successful method of investing, and can lead to undue risk for investors in today’s volatile market conditions. Turnover in a Managed Mutual Fund portfolio can diminish returns by added transaction costs, and also via the buy-sell spread incurred in the market. These drawbacks of Managed Mutual Fund portfolios have led us to adopt Modern Portfolio Theory as our core investment philosophy. Modern Portfolio Theory assumes that markets are efficient and security prices reflect all available public information. Within Modern Portfolio Theory, asset allocation and portfolio structure explain performance without the risk of stock picking and market timing that are used by Managed Mutual Fund portfolios. Here, diversification while minimizing fees is a central feature within Modern Portfolio Theory. Using a passive management strategy, Modern Portfolio Theory pursues investment returns that are often commensurate with market indices; through allocating assets via low cost, low turnover Index Funds, Exchange Traded Funds (ETFs) and fixed income securities, Modern Portfolio Theory aims to match market performance. In sum, Modern Portfolio Theory is an investment strategy that seeks to maintain returns and minimize risk by investing in unrelated asset classes.

With over 40 years of experience in attaining our clients’ financial goals,

we’re confident that we can do the same for you or your company. Please Contact us for a free consultation about the products or services that may best suit your financial and retirement goals.