The first decade of the 21st century, and the second one that's drawing to a close, have reinforced for investors some timeless market lessons: Returns can vary sharply from one period to another. Holding a broadly diversified portfolio can help smooth out the swings. Also, focusing on known drivers of higher expected returns can increase the potential for long-term success.
An Investment policy statement (IPS) is a statement that is a road map for you and your advisor in structuring your investments according to your goals. It spells out your investment goals and objectives, outlines the asset allocation targets, and the specific types of securities to be used with the expected risk/return profile of your portfolio.
If we asked you to hold your breath or stop blinking, how long could you do it? A minute, maybe two?
Now, what if we asked how long you could go without being moved by the latest headline news? Impeachment unrest, Hong Kong protests, Brexit stress, climate change, inverted bond yields, the price of oil… you name it. There’s plenty to think about these days.