Investment Philosophy

Common Investor Mistakes

• Buy and hold a diversified portfolio.
• Invest in poorly diversified portfolios, which expose the investor to increased risk.
• Invest in overly diversified portfolios that contain little risk but poor performance.

The Potomac Way

Portfolio diversification is important; however, your allocation should match the current market environment. As the market environment evolves you must dynamically adjust your portfolio.

Rather than choose one allocation and remain with it for years, we strive to help our clients have the proper allocation for the current market environment.

What might be a good conservative allocation for one market environment may not be the case six months later. Our goal is to give clients performance equivalent to a conservative portfolio during a declining market and the performance of a growth portfolio during a rising market relative to the clients' risk tolerance.