Every investor is looking for a way to beat the market. Unfortunately, there's no surefire formula for guaranteed success. However, diversifying your portfolio with one of these three asset strategies can potentially help minimize risk while still giving yourself a chance to earn attractive returns.
What Are Asset Strategies And How Do They Work?
Asset strategies are the methods and plan that individuals or businesses use to manage their financial assets, such as stocks, bonds, real estate, and cash. These strategies can include decisions about where to invest or when to sell certain assets. However, they also constantly monitor and adjust these choices in response to changes in the market and personal financial needs.
Prioritizing different goals, such as reducing risk or maximizing returns, can also shape asset strategies. Ultimately, the goal of any asset strategy is to help preserve and potentially grow wealth over time through wise management of financial resources. Developing a successful asset strategy requires a deep understanding of current market conditions and awareness of one's financial objectives and limitations. Working with a professional financial advisor can help individuals achieve their asset management goals.
Different Asset Strategies
Equity Income Strategy
When constructing an investment portfolio, many consider whether to focus on growth or income. The Equity Income Asset Strategy offers the best of both worlds. This strategy allows for potential capital gains through stock selection while also aiming for consistent dividend income. Dividends can hedge against market volatility, striving to provide steady returns even during market downturns.
In addition, companies that offer consistent dividend payments often have solid fundamentals and a history of stable earnings. By selecting stocks with both growth potential and a track record of high dividends, the Equity Income Asset Strategy allows for potential long-term growth and current income generation.
This approach can be particularly beneficial for those nearing or already in retirement who may value both steady income and the potential for portfolio growth. Ultimately, the Equity Income Asset Strategy offers a well-rounded approach that can seamlessly blend into most investment plans.
Equity Income Plus Strategy
This strategy is designed for income-oriented investors seeking high current income and modest capital appreciation. It focuses on companies that pay consistent and rising dividends. The portfolio typically includes a mix of large and small-cap stocks and international stocks. This strategy is appropriate for investors who have a moderate tolerance for risk.
Core Growth Strategy
This strategy is designed for investors who seek capital appreciation. It focuses on companies that are growing their earnings at a faster rate than the market average. The portfolio typically includes a mix of large and small-cap stocks from various sectors. This strategy is appropriate for investors who have a high tolerance for risk.
Conclusion
All of our strategies offer the potential for our clients to help grow and conserve their wealth. If you are looking for an asset management firm to help you reach your financial goals, we encourage you to learn more about our three asset strategies. Contact us today to speak with one of our experienced wealth managers.
The foregoing information has been obtained from a source considered to be reliable, but we do not guarantee that it is accurate or complete, it is not a statement of all available data necessary for making an investment decision, and it does not constitute a recommendation. Any opinions are those of Paul Snow and not necessarily that of Raymond James.