When you talk about investing, you probably think in terms of how much money you can make and how quickly you can make it. To earn better-than–average returns means assuming greater–than-average risk. Our goal is to extract the best return for each unit of risk within the context of your personal situation.
Croft Financial Group utilizes a top-down, four-step approach to portfolio management based on two fundamental convictions:
MARKETS ARE UNPREDICTABLE
Trying to forecast the direction of the economy, interest rates, and stock prices is a difficult job under ideal conditions. It is virtually impossible to predict changes when the economy is in transition, and because we believe a capitalist economy is always in transition, we prefer to structure portfolios that focus on risk-adjusted returns.
INVESTOR ATTITUDES AND CIRCUMSTANCES CHANGE
Just as the economy moves through cycles, so too do individual investors. We call it “life-cycle investing”, where fundamental changes such as a marriage, children, a new job, or illness in the family can affect your long-term objectives. Typically, in the early stages of the life cycle, most investors choose a growth portfolio. As we get older, our attitudes change which generally leads to a more conservative portfolio that focuses on income and preservation of capital.
Our Investment Counselors continually monitor economic circumstances in order to fine-tune that asset mix of each portfolio within the parameters of each investor’s risk tolerance.
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