Asset Allocation

We diversify assets across asset classes in most client portfolios, as appropriate for each client. Owning a balance of different types of assets, such as stocks, bonds, cash, gold and real estate, will generally smooth overall volatility and create a higher likelihood of a positive return over a given time period.

We also have shorter-term viewpoints on the relative attractiveness of particular asset classes. Over an intermediate-term time horizon, we think it is possible and appropriate to have an intelligent and actionable viewpoint on an asset class — and to emphasize it or de-emphasize it in client portfolios accordingly. We believe radical tactical shifts in portfolios are not as effective as more gradual changes, and we therefore follow a discipline of moderation in tactical asset allocations.