Risk and Diversification

In my fall 2005 Newsletter (meet the Fuggers) I wrote of Jacob Fugger the Rich (1459-1525). His strategy was to divide his fortune into stocks, real estate, bonds and gold (coins), whenever performance differences cause a major inbalance, rebalance back to your initial allocations. Jacob the Rich was probably the earliest tp articulate the importance of strategic asset allocation and periodic portfolio rebalancing as bedrock principles of wealth managment.

Although every client has an unique portfolio based on this unique circumstances Gary believes that Fugger's principlesare as important today as they were in the 15th century.

Build a foundation with Gold Bullion, Principal Protected Notes & Alternative Strategies. Add a solid framework of Bonds (domestic, global and possibly High Yield Bonds). Complete the portfolio with diversified equity and sector holdings.