Investment Management

Asset Class Diversification: Investing's Only "Free Lunch"

Investment classes move in different cycles at different times, depending on their economic strength, market outlook, industry trends, investor sentiment, and multiple other factors.

When one market “zigs” other markets may “zag.” For example, the U.S. stock market may be up, while Japanese stocks may be down.   Bond prices may rally while gold and other commodities sell off.

And while there is a chance that concentrating your portfolio into a single stock, sector, or geography will leave you rich and the talk of the neighborhood, more often, such concentration just leaves you vulnerable to more risks and higher volatility.

We believe that spreading your money across a wider range of investments and asset classes is one of the ways investors are able to reduce exposure to market and security risk while still enjoying the returns investing can generate. Moreover, it can help capture the best performing asset classes across markets.

That’s why we’ve made Diversification the foundation of our Core4 framework.

Diversification Helps Take the Guesswork out of Investing

As the following chart makes clear, investors never know which markets will outperform from year to year:

Rather than play the guessing game, the investment team at Oak Harvest utilizes its expertise, commitment to quality and the Core4 framework to build global, asset class-diversified portfolios for our clients.

By making Diversification a key element of the Core4, we believe we can help you capture the best returns wherever they are happening while reducing portfolio volatility. That in turn supports our primary goal: helping you achieve your vision for retirement.

Ready to learn more? Contact us and schedule a free consultation to talk about the Core4, our investment philosophy, and our approach to helping our clients fulfill their retirement vision.