Risk Management Risk Management in its simplest form is reviewing your overall financial strategy for road bumps, potholes and other nasty events that could not only delay but also destroy your financial future and then minimizing the impact from any potential event. At Cabot, we utilize loss guidelines, cash management and other techniques in the attempt to mitigate risk in our clients’ portfolios during volatile markets. 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. Unfortunately, many people think diversification is owning a bunch of different stocks. If, however, the stocks are all large-cap growth or all value, you are subjecting yourself to even greater risk. Instead, 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 strategy that does not address risk 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.
Alternative Investments
Cabot Money Management, Inc. may employ a variety of alternative investment products if both the firm and you deem that they are appropriate for your risk tolerance, your investment goals, and your investment experience. These investments may include gold, commodities and natural resource-based funds. While we have access to both private equity and hedge fund managers, our overall philosophy is designed to help limit investment expenses and enhance transparency. |
