“We can never really predict the future,” says Carlson on the potential of recession. Instead, BDF places their focus on making the most of opportunities in the market. Diversification, a seemingly obvious factor in portfolio protection, isn’t necessarily the “free lunch” it is perceived to be, explains Carlson. Pulling investments away from a hot U.S. stock market and into a generally under-performing international market, can seem “pretty painful” for clients, especially in the short term. But in the long term, as things cycle and the international markets ultimately rebound, a diversified approach is vital to building sustainable wealth.
Balsa Dinverno Foltz is a $4 billion Registered Investment Advisor, based in Illinois.