What about Investors?

By and large, rational people don’t like uncertainty. Especially when it comes to our investments, we generally prefer predictable, consistent returns. Realistically though, we must acknowledge that the world we live in is filled with uncertainty. Just a few months ago, who could have predicted the uprising in Egypt, the earthquake in Japan, or the no-fly zone over Libya?

And so, as investors – and as wealth advisors – we are presented with this challenge: Where and how should we invest to achieve the highest possible return with the least amount of risk? This is not an easy challenge to meet, and it’s one of the reasons we encourage you to seek professional advice when investing. For your reference, here are a few of the strategies we use to help our clients meet their goals.

1) True Diversification: Many think diversification is achieved by having many different types of stocks and bonds. However, true diversification is achieved by including different asset classes that have little or no stock/bond exposure, such as private equity, private debt, hard assets, etc. While no single asset class does well all the time, a mixture spread across multiple asset classes can help smooth out highs and lows.** This approach may not provide the best (or worst) return, but in environments like we are currently facing, it is important to diversify. In general, when crisis erupts in one region, areas of opportunity exist in others. Chaos always creates opportunity.

2) Active Management: Just because something is a good investment today doesn’t mean it will be a good investment tomorrow. This is why we choose to engage the human element – in the form of a single manager, co-managers or a team of managers – when making investment decisions. Active managers rely on analytical research, forecasts, and their own judgment and experience in making investment decisions on what securities to buy, hold and sell. Both at our firm and at most of the investment companies where we place our clients’ assets, an active management strategy is employed.

3) Portfolio Protection: In addition to traditional investments, our firm also utilizes a variety of insurance products to help our clients prepare for the unexpected. Our combination of licenses, registrations, and special education qualify us to work with all types of investments. There is virtually no investment vehicle we cannot utilize if the circumstances call for it – simple or complex.

One of the biggest challenges investors face is resisting the urge to make emotional, knee-jerk reactions. Not too long ago, the September 2010 business section of USA Today read “Shell shocked investors quit the market.” The S&P 500 then gained +20.6% over the last four months of 2010. Can you imagine how disappointed you would be to miss out on that rally?

As always, we are here to provide you with clarity, perspective, and support during challenging times like these. Thank you for the confidence you have placed in our abilities. We consider it an honor and a privilege to be good stewards of the assets you have entrusted to our care.

Warm Regards,

Robert Russell Curvin E. Miller IV CRPC®

P.S. We want you to know I’ve worked diligently to surround myself with some of the best of the best in the financial services industry. If you have any questions feel free to call or e-mail us.

P.P.S. Would someone you know benefit from receiving this communication? If so, call our office at 937-320-4733 to provide us with their contact information and we will be happy to send them a complimentary copy.