Classic Investment for Today’s Money

The market can be irrational and volatile. Long-term investment strategies rely on analysis and corporate valuation, but they often cannot take two fundamental factors into account: fear and greed.

We are not afraid of the word sell. We often use cash as a way to hedge against market volatility or potential market losses. Our management style may at times be active, will always be flexible and most importantly, hands-on.

Five Building Blocks of Investment

We follow fundamental investment strategies built on five key tenets.

1. Risk Tolerance

Everyone’s risk tolerance is different, and that tolerance dictates the course of their investment strategy.

The markets work in cycles, punctuated by significant and unexpected corrections. How much your portfolio participates in those cycles depends in large part on your risk tolerance. At Joule Financial, we strive to assist you in achieving your financial goals by looking to align your allocation with both your needs and your temperament.

Aggressive > Moderately > Balanced > Conservative > Stable Value

2. Asset Allocation

One of the most basic, yet ignored, principals of successful investing is properly allocating investments among different asset classes. Asset allocation is commonly mistaken with diversification – but the two are quite different.

Asset allocation is the blend between fixed asset classes (e.g. bonds) and variable asset classes (e.g. stocks and real estate).

The categories of asset allocations are as follows:

Aggressive > Moderately > Balanced > Moderately Conservative > Conservative

3. Diversification

With proper diversification or exposure to multiple asset classes, individuals can not only potentially improve results, but they may also reduce portfolio volatility.

At Joule Financial, we implement a rigorous process in selecting variable asset classes and determining what we believe is a prudent exposure to each. This allocation is called the Joule Financial All Equity Allocation, and is diversified among variable asset classes like large and small capitalized domestic companies, international and emerging markets, as well as potential exposure to specific areas like financial or utility companies.

The following is an example of a diversified, equity allocation model.

Services Page Diagram
Once the Joule Financial All Equity Allocation is determined, it’s implemented in direct correlation to your agreed asset allocation level, informed by your risk tolerance.

4. Rebalancing

Over time, the asset allocation and diversification of the portfolio will change. At different times, different asset classes will outperform others, so we believe it is important for a portfolio to be rebalanced in order to achieve the desired allocation.

Typically, on an annual basis, or more frequently if needed, Joule Financial rebalances each portfolio by calculating the current allocation and adjusting the exposure accordingly.

Services Page Diagram Variable and Fixed Equity

5. Time

Entering into a relationship with an investment advisor should not be taken lightly, and the success of an investment strategy can only be determined after navigating a series of financial market cycles. Immediate success is not always the case. Prudent and disciplined investors can, however, significantly improve results if they remain patient and diligent.

Unfortunately, most advisors don’t have a proper plan in place. While the development of such a plan is crucial, allowing adequate time for this plan to work is also important.

Joule Financial builds solid business relationships with long-term commitment – despite the market’s volatility.