We work with advisors to create strategic long-term model portfolios based on factors, such as:
- Current Capital Market Assumptions
- Return, Risk, and Correlations
- Time Horizon
- Liquidity Needs
- Risk Tolerance
- Spending Needs & Current/Future Income
- After-Tax Returns
- Any other client-specific issues
When building portfolios, we want to understand the actual risk exposures an investor is getting by investing in different asset classes. While vehicles and liquidity are ultimately a consideration, the most important part of the analysis is understanding how an investment is expected to behave.
Once the strategic model portfolios are developed, we will tactically make rebalancing and over/under weight recommendations based on our nearer term outlook for the markets.
We will also look to capitalize on or defend against thematic trends in the market that could lead to excess return or capital preservation opportunities. For example, we might recommend an investment in real assets to take advantage of a potential future inflationary environment while also allocating to Treasuries to defend against deflation.