A Nobel prize winning economist once wrote, “God must have loved the lone-wolf investor, because he made so many of them.” And how has the average investor fared in recent years? Consider this: it is estimated the S&P 500 Index realized a 13% annualized return for the twenty-year period ending 2003. However, the average investor in stock mutual funds realized an annual return of just 3.5% over this same time period. Why? Simply put: the average investor makes the buy-and-sell decision at the wrong time. That is to say, the average investor reacts emotionally, and one needs perspective and patience to make money—not emotion.
Customized portfolio management does not mean one-size fits all. It means understanding your individual risk tolerance and constructing a portfolio of individual equities and bonds that reflect both your life dynamics and that of the market. For example, coming out of a recession or economic slow-down, smaller companies have a tendency to outperform the overall market but the percentage allocation of small stocks in your portfolio also dependens upon your need for income (small companies typically do not pay dividends) as well as shifting economic dynamics—large company stocks typically outperform in the later stages of an economic recovery because they have relative superior pricing power in a maturing economy as inflationary pressures build and interest rates increase.
Located in Portsmouth, New Hampshire, New Castle Investment Advisors, LLC is an independent asset advisory firm specializing in customized portfolio management for individuals and companies. The firm is completely independent and works with a select group of clients who expect individual attention and expert advice. All client information is confidential. The investment bias of the firm is value investing, or growth at a reasonable price—at below average expenses.
To learn more about our unique approach to asset management contact us to arrange a confidential meeting, email@example.com.