Past vs. Present
Traditional investment approaches focus on stock picking and market timing. This approach yields suboptimal returns while exposing investors to unnecessary risk. Alternatively, modern finance illustrates that a portfolio’s asset allocation is the major determinant of long-term portfolio performance.
What is Asset Allocation?
Asset allocation means dividing your assets among different broad categories of investments, called asset classes. Stock, bonds, and cash are examples of asset classes, as are real estate, commodities and derivatives such as options and futures contracts.
Each asset class has a different risk and return profile and will behave differently in different market environments. Therefore, the percentages of the portfolio allocated to each asset class will drive the risk and return characteristics of the overall portfolio.
CB Capital’s Approach
CB Capital uses both qualitative and quantitative tools and methods to analyze the economy, markets, sectors, and securities. The Firm uses software and other technology to analyze economic and market data, research reports, white papers, company SEC filings and academic research to develop and update our strategic asset allocation models.
The Firm works with each Client to determine their investment objectives, tolerance for risk, and timeframe, and then develops an appropriate asset allocation strategy to best achieve those goals. The Firm will monitor and adjust the asset allocation strategy as appropriate in response to changes in a Client’s circumstances or objectives.