asset class risk thermometer

Asset Class 'Risk Thermometer'

Risk and reward go hand in hand. Cash in your pocket has no risk, but also no chance for additional return. An investment in a private business may be very rewarding financially, but has both concentration risk (all eggs in one basket) and liquidity risk (you can’t get your money out when you need it.)

We invest our clients in a range of asset classes to optimize the trade-off between return and risk. We will only invest our clients in assets such as stocks, bonds, mutual funds and ETF’s that are liquid (you can get your money out in 24-72 hours) and transparent (the current price is available from numerous sources.) Investments in real estate, private businesses, limited partnerships, private equity and hedge funds may offer the promise of higher returns with less risk, but those investments violate our rules about liquidity and transparency. We will not invest our clients in those asset classes.

Watch a short video on this topic

Download a summary of this strategy