As the S and P 500 market index made adjustments last week by dropping down -4.1% according to market watch, the year to date numbers remained positive at 3.58% since January 2018.
This blog is just a reminder that, like a top chef making a pot of soup that requires the right blend of ingredients, a well diversified portfolio is not made up of one component.
People often compare their portfolio to the S and P, when we as advisors have carefully constructed a portfolio that includes S and P exposure, but also adds in small and medium US companies, different bond sectors ( US, International high yield et.), as well as international, emerging markets stocks and alternatives. We pair that with your goals and values.*
Like a trained chef, we know it takes several ingredients, herbs, and spices to come up with the right mix that will satisfy your risk “palate”.
We build your portfolio based on what you are trying to accomplish in your life, not based on how the S and P performs.
Although performance is important, it’s not the end game.
To go back to the chef analogy, it ultimately does not matter how good the soup is, if it’s not shared with family or friends who get to enjoy the end result.
So it goes with your portfolio, the money is there to help you live the best life possible and take care of the things that matter most to you. Your portfolio, in and of itself means nothing if it’s not attached to helping you make things happen that are important to you and your family.
I wanted to reach out to let you know we are watching your portfolio, we know what’s important to you, and we are here if you have specific concerns that you want to address.
We take our job seriously as your partner and advisor, and if something has changed, please reach out and let us know.
*Diversification does not protect against loss of principal.
S&P 500 Index is an unmanaged group of securities considered to be representative of the stock market in general. You cannot directly invest in the index.