In its simplest form risk management is reviewing your overall financial strategy to help minimize the impact of any potential financial pitfall.
At Cabot, we utilize cash management, loss guidelines and other techniques in the attempt to mitigate risk in your portfolios during volatile markets.
Risk Management and Diversification
In general, there are several kinds of investment risk, including stock-specific and market risks. These, and other forms of risk, can often be reduced through diversification.
Diversification is much more than simply owning many different stocks. Proper risk management diversification is obtained by owning multiple-asset classes of domestic and international equities, fixed-income investments, cash, and alternative asset classes.
It is not easy creating wealth today, and it would be a mistake to let a careless investment management strategy put your hard-earned assets at risk. Creating a thorough and appropriate risk management strategy is one of the most valuable things you can do for yourself or your family.
How Can Cabot Help You With Risk Management Advice?
If you have questions about risk management and investment strategies, Cabot Wealth Management can help. Fill out our form to receive your complimentary portfolio review.