As much as we might wish to, we cannot predict the future. But, one thing we *can* do is reasonably plan for what may happen.
When you work with SJS, one of our first conversations is about helping you determine your overall investment goals. Then, when we create your portfolio, we decide which assets to invest in, in what percentages, and in which accounts to place these investments with those goals in mind. By following our MarketPlus Investing® philosophy, we strive to design low-cost, diversified global portfolios across asset classes using institutional quality mutual funds in order to better manage the relationship between your accepted level of risk and expected return.
As we review the risk and return potential of your portfolio, we’re always looking forward to project potential expected return and risk scenarios for each asset class in which you’ve invested over the long term – meaning 10 years or more.*
While we can learn from what has happened in the past, asset prices are based on expectations of future economic conditions. These expectations are inherently uncertain, as investors do not know what, exactly, will happen in the future. So, we believe that providing a range of potential expected returns for each asset class is appropriate, as using a single number often creates a bias that leads to unrealistic and unrealized expectations.
SJS uses these Capital Market Expectations to help us design a portfolio that is appropriate for you, and to share with you some of the insights from the SJS Investment Committee. We continue to strive for better information and research where appropriate, and we will update these long-term expectations alongside changing market conditions and economic realities.
We can’t know ahead of time which months (or even years) will have the highest market returns, but through MarketPlus Investing, SJS supports you and your investment goals by applying these capital market expectations with caution and using them primarily for long-term strategic planning rather than short-term market decisions.
* Statements contained in this report that are not statements of historical fact are intended to be and are forward-looking statements. Forward-looking statements include expressed expectations of future events and the assumptions on which the expressed expectations are based. All forward-looking statements are inherently uncertain as they are based on various expectations and assumptions concerning future events and they are subject to numerous known and unknown risks and uncertainties which could cause actual events or results to differ materially from those projected. Additionally, SJS has created hypothetical performance returns for each of its MarketPlus® Asset Allocation Models. The hypothetical performance was calculated by applying the actual performance of a mutual fund to the asset class percentage within a MarketPlus® Asset Allocation Model. There are inherent risks in the presentation of hypothetical performance data because the data may not reflect the impact of material economic and market factors.