Portfolio Review & Optimization

We begin with a thorough examination of your portfolio's asset allocation, which involves distributing investments across various asset classes like stocks, bonds, and alternatives to balance risk and return based on modern portfolio theory (MPT). This includes calculating metrics such as the Sharpe ratio (risk-adjusted return) and standard deviation to quantify volatility. We identify inefficiencies, such as over-concentration in high-beta sectors vulnerable to market downturns, using tools like correlation matrices to spot overlaps that amplify losses during events like the 2022 inflation shock or 2008 financial crisis. From there, we recommend rebalancing strategies, potentially incorporating AI-driven insights for dynamic allocation, as seen in current trends where AI influences portfolio construction by optimizing for productivity gains and diversification beyond mega-cap tech stocks. Tax considerations include tax-loss harvesting, where realized losses offset gains, potentially adding 0.5–1.5% to after-tax returns annually. We also stress-test the portfolio against bull and bear scenarios for 2026, factoring in policy changes, inflation constraints, and AI CapEx cycles, ensuring alignment with your risk tolerance and midlife goals. The outcome is a detailed report with projected returns under various market conditions, implementation guidance, and a 6-month review to monitor drift and adjust for emerging opportunities like emerging market equities or securitized assets.