A complicated market backdrop requires a more sophisticated investment approach to generate returns and manage volatility. Spencer Financial Services, Inc. provides individualized investment recommendations based on your risk tolerance, time horizon, liquidity needs, and individual investment preferences. Specific investment recommendations are determined based on your unique situation. However, most portfolios are managed in accordance with asset allocation principles, which manages risk based on your individualized risk tolerance. Through asset allocation, portfolios are divided into different asset classes, such as large company stocks, small company stocks, growth company stocks, value company stocks, bond funds, and cash investments. This results in a portfolio benefiting from a positive market, while protecting for times of market turmoil.
Diversification and asset allocation do not guarantee a profit nor protect against loss in a declining market. They are methods used to help manage risk.