Our investment process is designed to: (1) provide a clear line of communication between us, (2) determine how to accommodate your unique requirements and (3) manage your funds.
Prior to structuring your portfolio, two things need to be determined. First, your investment objectives and second, an appropriate level of risk to help achieve your goals as well as the level of risk that you are comfortable with. This information is prepared and reviewed with you at least annually as your objectives or risk tolerance change, or at any time you deem necessary.
While no one can predict market cycles with 100% accuracy, we seek to manage the risk you are willing to take to accomplish your objectives. We attempt to control risk (not eliminate it).
Our primary pledge to you is to manage your portfolio within the guidelines agreed upon and to always put you first and act in your best interests.
After ascertaining the risk/return level that we believe will achieve your goals, asset allocation is the largest factor that affects risk as well as return. Your portfolio may consist of the three main asset classes: equity (stocks), fixed income (bonds and other interest-paying securities) and cash alternatives. After developing a suitable asset allocation based on your objectives, risk tolerance and the levels of the capital markets, we will also create a sector allocation. Each sector of the equity market has different economic drivers and we will vary our sector allocation to take advantage of economic trends.
Our belief is that wealth is created through capital appreciation. Over time, we believe stocks, as an asset class, will continue to provide a competitive return to investors. In our experience, successful investment programs involve a long-term perspective. A sound investment strategy requires a commitment to sound investment disciplines.
Once the strategy for our sector allocation has been determined, we then will choose to invest in the stock of companies that provide quality prospects for appreciation as their earnings grow. Our strategy seeks to invest in companies that have high anticipated growth but are at relatively low prices. However, we strive to consider the growth prospects of all companies, and will not limit our criteria to either growth or value, but look for opportunities in the broader market.
Our program includes investments in U.S. Treasury bills, notes and bonds, municipal bonds, corporate bonds, and bond funds. We may also invest in ETFs and open- and closed-ended funds.
We will provide you with written progress evaluations on a quarterly basis, and review your asset allocation and historical performance. In addition, you will receive a monthly statement and a 1099 at the end of each year. You will have direct access to our team should you have any questions or concerns.
Investing involves risk and investors may incur a profit or a loss. Diversification and asset allocation do not ensure a profit or protect against a loss. Sector investments are companies engaged in business related to a specific sector. They are subject to fierce competition and their products and services may be subject to rapid obsolescence. There are additional risks associated with investing in an individual sector, including limited diversification. Holding stocks for the long term does not insure a profitable outcome. Investing in stocks always involves risk, including the possibility of losing one's entire investment.
Investments mentioned may not be suitable for all investors. Any opinions expressed are those of Susan Estep and are not necessarily those of Raymond James.
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