RATIONAL INVESTING
IN AN
IRRATIONAL WORLD

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THE STRONGEST PRINCIPAL
OF GROWTH
LIES WITHIN HUMAN CHOICE

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Our Strategic Advantage

The edge you will get with Paisley Financial lies within our strategic design to Capital Management. Our Trilateral Active Management approach is our optimal way to achieve maximum diversification & growth, as it encompasses all of our active management capabilities into a single, engine.

Active Strategic Management

  • Growth Strategies

    An aggressive portfolio strategy mostly comprised of our top growth stocks which aims to maximize capital growth. Risk is typically managed through the use of a well-diversified stock portfolio.

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  • Moderate Strategies

    Strategies that attempt to achieve growth but is averse to taking on large amounts of risk by tilting towards stocks, up to 60%. Growth is placed as the primary emphasis and current income as their secondary emphasis though may change depending on prevailing market conditions. 

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  • Conservative Strategies

    An amalgam of fixed income & short term revenue generating instruments that are focused on low risk objectives. The investments sought are of a high yield with a steady dividend history. Option strategies may be use to grind out additional gains or to work as a volatility hedge.

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  •  Hedge Fund Style (Long/Short)

    Our Trilateral Active Management approach is our optimal way to achieve maximum diversification & growth, as it encompasses all of our active management capabilities into a single, engine. The strategy incorporates all of our fixed income, currency, equity and commodity trading strategies we have developed into a model that will ebb and flow with volatility, growth, recessive interruptions or trends and all invested in a securities-only product.

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  • Active versus Passive Management

    Active management is the art of stock picking and market timing. Passive management refers to a buy-and-hold approach. Buy and Hold worked well enough until 2008 when the DOW dropped 37% and has still not recovered. To understand the right choice for you, please learn more below.

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Bond Strategies

Investors in fixed-income securities are typically looking for a constant and secure return on their investment. For example, a retired person might like to receive a regular dependable payment to live on, but not consume principal. This person can buy a bond with their money, and use the coupon payment (the interest) as that regular dependable payment. When the bond matures or is refinanced, the person will have their money returned to them.

There are also inflation-indexed bonds, fixed-income securities linked to a specific price index. The most common examples are US Treasury Inflation Protected Securities (TIPS) and UK Index Linked Gilts. This type of fixed income is adjusted to a Consumer Price Index (in the US this is the CPI-U for urban consumers), and then a real yield is applied to the adjusted principal. This means that these bonds are guaranteed to outperform the inflation rate - (unless the government defaults on the bond). This allows investors of all sizes to not lose the purchasing power of their money due to inflation, which can be very uncertain at times.

Historically, bonds have returned more than cash investments, and exhibited less volatility than stocks and because if that reason fixed income investments are usually a necessary component of a portfolio that is diversified across different asset classes. In addition, the return on bonds has often offset the negative return on stocks during periods of market downturn. As a result, adding bond investments to an all-stock portfolio generally lowers the risk of your overall portfolio. Keep in mind that even within asset segments, like stocks or bonds, an investor should have some diversification through many individual securities or through mutual funds.

Bonds are typically considered a safe income generating investment but there are inherent risks that need to be understood before investing. Risk such as inflationary risk, interest rate risk, currency risk, default risk, credit quality risk, liquidity risk & even event risk as seen in 2008 are a few things you need to understand before choosing a bond or income generating investment.

The bottom line is that bonds and cash equivalents can play an important role in your portfolio depending on your objectives, age and risk you are willing to accept. If you have any questions in regard to risks of investing in bonds please give us a call and we would be glad to help you out with your questions.

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