We believe that investors should view their financial assets in three buckets.
1. Everyone should have that completely safe savings account / money market fund for emergencies. However, it is important to not put too much into this bucket as it will not grow or match inflation.
2. There should generally be a portion of assets fully exposed to the stock market for long-term growth. This buy and hold bucket might have individual stocks or S&P 500 funds. This bucket would be much larger for a younger individual and might even be empty for a retiree.
3. The third bucket would be a portfolio that is positioned for growth but does have some form of risk control in the process. This might be similar to the traditional 60% stocks / 40% bonds portfolio that has historically provided solid gains over time but without the 50% decline in a bear market. This is the market that Asbury was formed to serve, and might be where a retired / semi-retired individual has a significant portion of their funds. Our portfolios are based on several tactical models that combine to incrementally add and remove risk even down to completely removing all risk in a severe downturn.
As investors go through life and encounter varying financial circumstances, they should make adjustments to the percentage of their assets allocated to each of the three buckets.
How Does This Work in Practice
Things to Consider
- Asbury Investment Management was very successful in getting out of the market during the late 2018 decline. Of course, we cannot always read the market just right.
- There are indications when the markets change their minds about risk. These are just a few of the many pieces of data that we examine on a daily basis.
- With many decades of experience, observing, analyzing and trading markets, Asbury Investment Management uses many data points to form an overall view of the markets and invests accordingly.
- There is no way to eliminate all risk from investing and our strategies could never guarantee future results. Our clients can be certain that we are constantly watching their portfolios and applying a rigorous, non-emotional strategy with a focus on protecting their money.