Having a properly diversified portfolio is critical when managing risk in a portfolio. Our goal in portfolio diversification is to get the optimum rate of return, taking into consideration your specific goals and objectives, without introducing any more risk or volatility than necessary.
In order to reduce risk and volatility in a portfolio we use a sophisticated method of diversification that has been tested over time and is currently utilized by institutional money managers across the globe. We strongly believe that proper diversification goes well beyond the decision to use stocks and bonds in a portfolio. Over-diversification, while effective in reducing risk, is detrimental to the performance of long-term portfolios.
Coast Wealth Management diversifies portfolios by market capitalization (large and small), investment style (growth and value), geography (domestic and international), market efficiency (mature and emerging), and by management approach (active and passive/indexing).