As wealth advisors here at Signet, we review numerous investment portfolios. Many investors, even those who are diligent, can unknowingly find themselves exposed to significant risks.

Right now, we’re observing three concerning trends that could undermine the potential of your investments:

1. Riding yesterday’s wave too long: The pull of big growth stocks
   The past decade saw tremendous growth in a small group of large-cap growth stocks, particularly in the technology sector. It’s understandable that these winners might become a dominant part of your portfolio. However, clinging too tightly to past successes can create a dangerous lack of balance. Like a ship with all its weight on one side, your portfolio could become vulnerable if the market tide turns.
2. Staying too close to home: Missing global opportunities
   Many portfolios we review are heavily weighted towards U.S. stocks, with little or no direct exposure to international markets. While investing in familiar territory can feel safe, it’s like only exploring one island in a vast ocean. International markets offer significant growth potential and diversification benefits that can enhance your portfolio’s overall performance and resilience.
3. The “bonds are boring” misconception: Overlooking a crucial anchor
   For years, the excitement of the stock market overshadowed the role of bonds. Some investors may dismiss bonds as a drag on returns. But in today’s environment, that couldn’t be further from the truth. Bonds act as a crucial anchor for your portfolio, providing stability and potential downside protection when the stock market experiences turbulence.

The hidden danger: You might not even know

The most concerning aspect of these trends is lack of awareness. Investors may not realize the extent of their concentration in a single sector, their limited exposure to global markets, or the absence of a stabilizing bond allocation. These risks often develop unintentionally, a byproduct of market momentum rather than a deliberate strategy.

This highlights the critical need for regular portfolio reviews and rebalancing. A well-constructed portfolio is like a balanced ecosystem, with multiple sources of return and built-in diversification. It requires ongoing monitoring and, at times, a strategic “reset” of position sizes to align with the current economic landscape and your unique financial goals.

So, what can you do to ensure your investments are on the right track?

At Signet, we believe in proactive portfolio management.

• We recommend a comprehensive portfolio review at least annually. In fact, we conduct these reviews more frequently for our existing Signet clients.
• For those who prefer a do-it-yourself approach, there are online tools, such as Holistico, to help you assess your risk and make adjustments.

In the current environment, with shifting interest rates, tariff uncertainty, and evolving global growth prospects, it’s not just about rebalancing; it’s about strategically resetting your portfolio. This might involve:

• Carefully reducing overweight positions in areas that have grown disproportionately large.
• Strategically increasing exposure to asset classes or geographies that offer better risk-adjusted returns in the current climate.
• Re-evaluating your bond allocation to ensure it aligns with your risk tolerance and income needs in a higher interest rate environment.

Are you confident your portfolio is truly positioned for today’s realities?

Ignoring these potential blind spots could expose your investments to unnecessary risk and potentially derail your long-term financial goals.

At Signet, we offer a complimentary portfolio review to provide you with clarity and direction. We’ll assess your current holdings, identify any potential imbalances or concentrations, and offer personalized recommendations tailored to your unique circumstances and the current market environment.

Let’s work together to ensure your investment portfolio is robust, diversified, and strategically positioned to navigate any market conditions as you pursue your financial objectives. Take the first step towards greater confidence and clarity. Reach out to Signet today to schedule your complimentary portfolio review.

IMPORTANT DISCLOSURE

This is a publication of Signet Financial Management, LLC.

The information presented is believed to be factual, but we do not guarantee its accuracy and it should not be regarded as a complete analysis of the subjects discussed. All expressions of opinion reflect the judgment of the authors as of the date of publication and are subject to change. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Information in this presentation does not involve the rendering of personalized investment advice. It is limited to the dissemination of general information on products and services. A professional adviser should be consulted before implementing any of the options presented.

Information in this presentation is not an offer to buy or sell, or a solicitation of an offer to buy or sell the securities mentioned herein. Information on this presentation is directed toward U.S. residents only. Signet only transacts business in states where it may legally do so.