Your Asset Allocation: The Sound Stewardship® Portfolio Construction Methodology Explained
At Sound Stewardship®, we take a principled approach to investing.
Our latest white paper explains our portfolio construction process, which includes 10 basic principles. You’ll learn how:
- To better understand diversification as it relates to:
- Asset Classes
- Risk/Return Measures – (downside risk-adjusted returns)
- Impact of expense ratio
- “The ultimate goal of diversification is to achieve a desired rate of return with the least amount of downside risk possible.”
- To understand how to manage emotions when managing a portfolio.
- Long-Term Perspective
- Handling emotions during market cycles
- Regular rules-based rebalancing vs. knee-jerk buying/selling
- To learn how Sound Stewardship mitigates the impact of taxes on a portfolio.
- Responsible asset location strategies
- Taking advantage of tax-loss harvesting when appropriate
That means our investment strategies and tactics do not change every time market or economic conditions change. We don’t chase returns, we don’t buy into the latest fads and trends, and we certainly don’t let emotion drive investment decisions.