Truisms from your Wealth Management Firm in Kingsgrove and Beverly Hills

Wealth management firms in Kingsgrove, Beverly Hills, and around the world, are tasked with a difficult balancing act: how to properly construct an investment portfolio for their clients. It seems as though everyone, in these dynamic times, has heard of someone hitting it rich with a particular asset class, like real estate, cryptocurrencies, or the online market, but these are outliers – and their risk profile simply does not suit the majority of investors.

At TLK Partners, we spend a great deal of time researching the market, to ensure that our clients are engaged in areas of the market that suit their goals and their risk profiles. And while our information concerning the market is available in real time, we also tend to lean on some truisms, which have outlived the growth and the deflation of trends consistently, for the past one hundred years or so.

Stocks Offer Consistently High Returns

Lost in the panic of the sudden shocks of 1929, 1987, and 2008 is the realisation that no other asset class has provided the same amount of growth as stocks have. They have consistently outperformed bonds by a ratio of roughly 2 to 1 – and the so-called ‘riskless’ bond, it turns out, will fluctuate in value in much the same pattern as stocks do (albeit to a lesser degree of magnitude). Since 1980, they have set the standard across the western world, beyond their comparative risk.

Property Does Offer Stability

The impact of the credit crunch in 2008 was widespread and immediate. The world’s largest housing market, grossly swollen by overextended lines of credit and weak oversight, crashed spectacularly, and the impacts were felt globally. Even countries who had not inflated a housing bubble to the same extent felt the pinch. This reality, however, should not be considered par for the course. Data clearly shows that property is among the safest investments out there.

Diversification will never go out of style

More than a few fortunes have gone up in smoke when the owner began to treat their assets like a stack of poker chips. This isn’t a game, however – never, ever put all of your eggs in one basket, no matter how much of a ‘sure thing’ it may be.

Among Kingsgrove’s and Beverly Hills’ wealth management firms, TLK Partners stands out, for its attention to detail, and commitment to our clients. Contact us today to find out more.