To be sure, with equity valuations and investor complacency as high as they are, there’s little room for error. Any single event could break the euphoria, and investors could easily be caught unawares. It isn’t prudent to invest with rose-colored glasses, or with blinders on. We prefer an “eyes wide open” approach focused on protecting and growing assets over the long term.
When Wouldn’t You Want to Protect Your Assets?
No matter what the markets are doing (good, bad or indifferent), there is always a need for some degree of protection. We would be naïve to think otherwise. Even the rosiest of pictures will have its thorns. We can invest in any asset class, anywhere in the world. Protection, by our estimation, also must entail broad diversification; we typically hold roughly 700 positions. While diversification cannot assure profits or prevent loss — nothing can — it has helped us protect and grow our clients’ assets over time.
Ultimately, investing is about getting you to your desired outcome, preferably with the least angst along the way. Even if protection means “giving up” a little along the way, it is well worth it for the greater reward in the end.
We invite you to take the Global Allocation Challenge to see how an outcome-oriented strategy that balances risk and reward can make a significant difference over time.
Dennis Stattman, Managing Director and portfolio manager, is head of the Global Allocation team. He has been managing the Global Allocation Fund since its inception in 1989. Dennis is a highly respected and award-winning industry veteran with 33 years’ experience.
To learn more about the Fund, visit blackrock.com/globalallocation. Complete performance information can be found here.