We work with each client to tailor an asset mix that will provide the best combination of after-tax return, risk, income, liquidity and flexibility. Stocks can be very volatile over short periods, but for long-term investors, they are no more risky than bonds.
Bonds have an important place in most client portfolios.
Frequent changes in asset allocation usually hurt returns and add risk. Most clients will achieve their goals if they stick to a long-term plan, as historic asset return patterns are well established. In addition, market timing usually does not work, and generates taxes unnecessarily. Diversification reduces risk. We encourage clients to consider such asset classes as international equities and U.S. small companies.