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We give you the best of both worlds...

enjoy the
market gains
without the standard risk

the top 2 concerns for investors:

1
Risk of Loss in a Down Market

Portfolio Losses

2
Risk of Missing Out in an Up Market

Portfolio Gains

Investors want the best returns, but they do not want to accept the risk of losing money in a down market. Because investors do not want to accept the risk of potential loss in a down market, they invest less aggressively, which can cause them to miss out on potential gains in an up market.

THE CONVENTIONAL STRATEGY

Modern Portfolio Theory

In order to manage those primary risks, advisory firms typically recommend using Modern Portfolio Theory (MPT) to diversify a portfolio through owning global stocks and bonds. The idea of MPT is that you can use a mathematical framework to construct portfolios to optimize expected returns based on a given level of market risk, emphasizing that risk is an inherent part of higher reward. Theoretically, it sounds good; but in practice, it often leaves investors dissatisfied.

THE PROBLEM

Because most of us are concerned with both the risk of missing out and the risk of loss, the majority of investors just churn in the middle so they don’t have too much risk either way. But, as the saying goes, “No risk, no reward.” So, in effect, playing it safe by the conventional means typically produces subpar returns when financial markets are great, yet significant losses when market conditions are unfavorable. At this point, you are probably thinking, ‘this does not sound good for me.’

We agree.

Caution Sign

HOW WE INVEST DIFFERENTLY

desk with digital portfolio and plant with window in background

As classically trained investors, we used to only use Modern Portfolio Theory — as the vast majority of other advisory firms still do — but we have since developed an alternative strategy that we believe more effectively addresses the primary investor risks better over time. 

 

We invest a portion of a client's money directly into the stock market using ETFs and/or individual stock holdings. We then strategically layer in other financial instruments that protect against losses in down markets. Finally, to round out the risk return profile for each client’s portfolio, we use bond and commodity holdings as appropriate.

WHAT THAT MEANS FOR YOU

You keep more of your money and grow it faster without the excess risk that brings excess losses. You are happy when markets are up, and do not live in fear when markets are down.

 

Though we can not specifically predict the future, we can confidently say there will be times when the markets are screaming to new heights and also times when it may seem the bottom is never coming. Our strategy helps you thrive in both realities and everywhere in between.

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Still have questions?

No problem. 
That's what our introductory meeting is for.

INFO

Convergent Financial Group 2024 All rights reserved.

CONVERGENT FINANCIAL GROUP

is proud to have been highly rated and voted among the best financial planners in Charleston and Mount Pleasant since we first opened our doors.

3850 Bessemer Road
Mount Pleasant, SC 29466
(843) 972-4402

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