Investing Philosophy

Perspective Wealth’s investing philosophy is based on a broad fact base. Multiple and extensive studies clearly demonstrate that over the long run:

  • Portfolio Structure (asset allocation and diversification) is the primary determinant of a portfolio’s return and variability

  • Structured investing (indexing) outperforms active investing (speculative stock picking and market timing)

  • Risk and return are related; investors are best served by spending units of risk in areas where they are compensated in the form of greater return.

Our responsibility to you is to create a tailored investing plan that offers the highest probability of meeting a targeted return, with the lowest level of risk. We accomplish this by methodically focusing on asset allocation, utilizing structured investment vehicles, and within a portfolio, emphasizing asset classes like small-cap, value, and emerging markets. At the same time, we eliminate the unnecessary risk and higher cost of stock picking and market timing.