Five Portfolio Construction Basics from Pawleys

Here are five quick portfolio construction basics from Pawleys Investment Advisors that can really supercharge your performance results:

Focus on Quality – highly rated bonds, stock of companies with little debt and consistent earnings, funds with solid long-term track records.

Have a Plan – avoid making random changes – it will almost always hurt your return and add to portfolio volatility.

Rebalance – sell low quality or over-weighted holdings when you need to raise cash, buy high quality investments in under-weighted areas when adding cash, and review at least annually.

Add Structure – avoid being a “collector” of various investments – instead choose an asset allocation model and build a well-diversified portfolio of investment that complement each other and work well together.

Enjoy the Process – have fun and don’t let hyped-up news stories about the economy and stock market cause you to question your well-laid plans .

© 2014 Pawleys Investment Advisors, LLC. All rights reserved.

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