Investors are often best off targeting returns that match their risk tolerance. Balanced portfolios of stocks, bonds, real estate, and other traditional asset classes go a long way toward achieving that reasonable mix of risk and return. These investments also allow investors to benefit from new innovations and participate in economies’ tendency to grow. But when economies are stressed, traditional asset classes tend to suffer. Diversifier investments are specifically designed to behave differently from traditional asset classes, potentially supporting portfolios in challenging environments.
Counterpoint Funds’ strategies operate within this diversifier category. Their objective is to enhance portfolio diversification and to help prevent investors from making emotional decisions when markets are stressed.