Asset Allocation
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"In 1967, economists gathered at a conference and tentatively declared that the business cycle was obsolete. Since that time, the U.S. economy has had six recessions."
- Federal Reserve Bank of St. Louis
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Triton's Philosophy
One of the most important decisions an investor can make is the selection of an appropriate mix of investment asset classes. This apportionment, or Asset Allocation, affects the risk and return of the portfolio, and is central to the formation of solid investment strategy. History shows that recurring patterns exist in the economic cycle, and the effect of the different phases on asset class returns is significant. Triton recognizes that successful investment policy must integrate long-term risk and reward considerations with the dramatic effect the economic cycle has on asset class performance.
Triton has established asset allocation models, including maximum and minimum ranges for each model, in order to manage risk within our clients' portfolios. We believe that short-term movement of funds should occur within predetermined long-term asset allocation guidelines as relative asset class valuations, cycle phase intensity, and tax considerations dictate.
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Asset allocation need not be a static discipline. Adjusting one's asset allocation within predetermined guidelines is good investment policy!
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