Portfolio Allocation
Actual portfolio composition will vary based upon:
• Risk tolerance
• Capital requirements
• Income goals
• Horizon/Age
• Marginal tax rate
• Other exposures
Portfolios rebalanced periodically according to economic expectations and market conditions.
Equities
• US • Europe • Asia • Emerging Markets
Larger allocations for investors with longer time horizons or those willing to accept more volatility risk in exchange for more potential long term growth.
Fixed Income
• Treasuries • Agencies • Corporate • Municipals
Larger allocations for investors with greater current income needs, or reduced risk tolerance. Also often used during periods of expected limited growth
Commodities/Inflation Protection
• Gas/Oil • Precious Metals • TIPS
Larger allocations used to protect against expected rising inflation, often caused by increased money supply.