As we evaluate risk, we focus on several factors including investment time horizon and the investors personal attitude related to risk, return and time horizon. We also consider the impact of inflation on the future purchasing power for investors.
Our primary method of mitigating risk and providing investors with the greatest opportunity for success is to determine the appropriate asset allocation for their unique circumstances. For the risk an investor assumes, they should ultimately be rewarded with an appropriate rate of return. This is typically accomplished by establishing the appropriate time horizons and balancing it with an appropriate asset allocation and degree of risk assumed.