The two most important things to consider in investing are an investor’s time frame and personal tolerances to risk or volatility.
Over most long-term time frames, stock portfolios historically have tended to outperform bond portfolios. Of course, the Great Recession reminded us that that isn’t always true. Generally speaking though, history tells us that the longer an investor’s time frame, the more invested in stocks he or she should be. However, stocks have always generated those returns in a much more volatile fashion. The highs are higher and the lows are lower. These oftentimes dramatic fluctuations can be extremely disconcerting to investors. Risk tolerance is a highly personal trait; neither chart nor historical analyses will make any of us more or less risk averse or tolerant.
At SGL Investment Advisors, Inc. we offer a full suite of portfolio options within one cohesive management methodology that offers customizable and flexible exposures to a variety of risk/return profiles. Our focus on performance stability via careful and calculated asset allocation management has dampened much of the volatility other investors experienced in the last few years. The ability of investors to move within SGL’s individual portfolio models offers our clients the ability to dynamically structure and restructure their risk exposure profiles as appropriate to respond to economic or client-specific changes.