Swot Analysis Of Brown 's Investments And Portfolio Management

851 Words4 Pages
Strengths related to Brown’s Investments and Portfolio Management Our team has carefully reviewed your portfolio and have identified areas of strength and areas that need improvement. The term portfolio includes all your investment accounts except the 529 Plan which we analyzed separately. One strength in regards to your portfolio is that it has outperformed the market over the last ten years. This means that on average your returns were greater than the returns of the market. Outperforming the market is not guaranteed each year, but when it does occur, you are generating higher returns and increasing your likelihood of meeting your financial goals. Areas of Improvement Though you have several strengths related to your portfolio, our team did find a few areas that could be improved. Our primary issue with your current portfolio is your high equity allocation; this means that a majority of your portfolio is held in stocks. When a majority of your portfolio is held in stocks, you are not diversifying throughout all asset options available to you and are opening yourself up to a higher level of risk. By diversifying throughout different types of assets, cash, bonds, stocks, etc., you minimize your risk and are more likely to reach your goals. The next area of improvement we would like to discuss is the lack of variety in the quality and maturity in your bold holdings. Diversification doesn’t apply to just the asset classes, it also applies to the assets within the
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