Portland-area former Morgan Stanley broker Douglas Greenberg provides an expert look at asset allocation strategies.
An investment strategy which aims to balance risk and reward, asset allocation does so by apportioning an investor’s assets according to their goals, tolerance for risk, and so-called investment horizon. A former Morgan Stanley broker specializing in asset allocation, as well as alternative investments and wealth advice, Douglas Greenberg offers a closer look at asset allocation strategies.
“Having ascertained an investor’s goals, risk tolerance, and investment horizon or timeframe, successful asset allocation relies heavily on addressing the characteristics of different asset classes within an overall portfolio,” reveals Greenberg. Different asset classes, he further explains, can include, for example, stocks, bonds, real estate, and cash.
“Asset allocation echoes the old adage about not putting all of one’s eggs in a single basket,” adds Greenberg. “Distinct asset classes, such as stocks, bonds, and real estate, will perform differently over time,” the former Morgan Stanley broker continues, “as a result of economic conditions, market forces, and other variables such as government policies.”
According to Greenberg, when an individual diversifies their investments across a range of asset classes, they are, in effect, significantly reducing their overall risk. “If one asset class, let’s say, should, unfortunately, perform poorly, this, when employing a well-considered asset allocation strategy, can be offset by other, better-performing asset classes,” adds the expert.
Douglas Greenberg Tips for New Investors
Aspiring investors looking into asset allocation strategies should first identify and assess their objectives, time horizons, and openness to risk before identifying their target portfolio and selecting their investments, according to Greenberg.
This is something which, he says, often relies upon a considerable degree of introspection and planning. “It’s also vitally important to remember to periodically review and rebalance further down the line,” suggests the expert.
“Furthermore,” he adds, wrapping up, “it’s also considered the good practice to diversify investment holdings not just across asset classes, but within them, too.”
Texas-born father of two Douglas Greenberg is a resident of Lake Oswego, Oregon, located 10 miles south of Portland. A graduate of the University of Pennsylvania’s Wharton School of Business Executive Education programs and a former Morgan Stanley executive director, wealth advisor, and senior portfolio manager, Greenberg is known for his problem-solving skills, as well as specializing in alternative investments and asset allocation.
A fan of professional soccer and basketball, Greenberg holds a Bachelor of Science degree from the University of Texas at Dallas and, in his spare time, enjoys hiking, sailing, and wine tasting in addition to travel, skiing, and scuba diving.