Balanced Account

Our balanced account philosophy is designed to provide an overall approach to the asset allocation decision and is suitable for clients with the overall goal of preserving and enhancing capital. In our balanced approach, we determine the client's investment objective and structure the portfolio accordingly, whether it's 50% equity/50% fixed, 40% equity/60% fixed, or even 20% equity/80% fixed. During periods of weakness in the market, we may reduce the equity component further and raise the fixed income portion of the portfolio. This provides us the flexibility to preserve assets during downturns and also provides us with a buying opportunity for Runnymede when the market outlook is more favorable for equities.

The Roles of Stocks and Bonds
Each asset class has unique characteristics that serve a specific purpose within a balanced portfolio. Equities generally serve as the primary source of capital appreciation and inflation protection. Bonds are often the primary source of current income. Bond prices also have a low statistical correlation to stock prices, which further diversifies portfolio risk.