Today, investors face a number of economic challenges. While market forecasts suggest moderate growth and inflation stabilization, volatility and external uncertainties could pop up at any time—including within capital markets.
Decades of capital markets performance show that the best way to manage an investment portfolio is to look at the long term. By building a diversified portfolio of stocks, investors can capitalize on growth opportunities over time—and minimize the risks of market volatility.
The benefits of a properly diversified equity portfolio
In uncertain times, the right strategies can pay dividends. A diversified equity investment portfolio offers:
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Greater risk-adjusted returns. By strategically investing across asset classes, investors can maximize potential returns while minimizing risk.
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Protection from market fluctuations. Each asset class is unique: what performs well one period may falter the next. In unpredictable markets, a well-diversified portfolio can provide more predictable returns and minimize losses during temporary downturns—especially over the long term.
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New opportunities. Diversification opens the door to new investment classes, geographical markets, and industries.
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Capital preservation. For older investors and business owners, diversification can help preserve retirement funds and protect against losses.
“The market has historically rewarded equity investors with the discipline and commitment to remain invested over time,” says William P. Lanzon, Chief Investment Officer at First American Bank. “Owning a diversified portfolio of high-quality companies across a broad spectrum of sectors and industries has proven to lessen the inherent volatility of equity investing while generating attractive long-term returns.”
First American Bank: your long-term equity investment partner
Over the last five decades, we’ve helped our customers build a financial future they can rely on. What sets our investment management group apart?
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A disciplined approach to growth. First American Bank typically invests in competitively advantaged companies—namely, those gaining market share in select growth markets. We identify those that adhere to conservative financing protocols and generate excess free cash flow—the better to reinvest into their core business or an adjacent business for future growth.
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Tailored solutions. Unlike large impersonal institutions, we get to know your objectives and investor profile inside out. Whether you’re actively seeking to augment your wealth or simply safeguard and transfer it, our investment management experts tailor strategies based on your needs: core objectives range from 100% wealth preservation to an ultra-aggressive, globally allocated mix of multiple asset classes intended to maximize returns and minimize risk.
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A full range of services. As your long-term financial partner, your dedicated investment advisor coordinates all aspects of your investment and planning needs: account administration, portfolio allocation, wealth transfer planning, retirement planning, business succession, exit strategy planning, and more. Your advisor will work closely with you to determine your investment objectives, and then coordinate implementation with our investment management group.
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Built-in tax mitigation. On top of building your investment portfolio, First American Bank handles the day-to-day management with an eye to minimizing the tax impact of capital gains. For example, we may use a tax-loss harvesting strategy in which our portfolio managers identify assets that have declined in value throughout the year and can be sold to generate a capital loss—offsetting capital gains or as much as $3,000 in income. The result can place clients into a lower tax bracket while giving them the opportunity to repurchase the asset after 30 days and generate greater long-term returns.
Set the stage for lifelong financial success
No matter the market, the right strategies can open doors. With an experienced investment team by your side, you’re positioned to grow your portfolio—and navigate uncertain times with confidence. First American Bank applies a long-term perspective and personalized approach to deliver consistency and stability—and forge a partnership that stands the test of time.
