Financial and social media can leave investors with an overpowering feeling that there’s something missing in their portfolios. Our approach seeks in many ways to counter those pressures. And there actually are many oft-championed exposures that we purposely leave out of our portfolios. While the motivations of this approach are many, the primary rationale is that, for the average investor, most such exposures are not a necessary component of a generally appropriate allocation. See, promoters often focus solely on potential performance of their favored ideas. But such a narrow focus on potential gain—or even protection from loss—ignores the context of each individual’s financial situation and the fact that the intended flavor of such exposures might already exist within the portfolio. We find the better approach to be one that provides a breadth of broadly applicable investments, encourages clients to be candid about their financial situations and evaluates additional portfolio exposures as the scenario demands.

Listen to this month's podcast from CIO Mark Mowrey:

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