Buffalo First Wealth Management, LLC’s approach to selecting investments is different from traditional financial service providers. An experienced in-house investment department, unmotivated by commissions, provides expert objective advice based upon what is in your best interest.
Based on Modern Portfolio Theory, your Buffalo First Wealth Management, LLC Financial Advisors will help you construct unique asset allocation strategies specifically tailored for your portfolios. The allocation will take into consideration your time horizon and level of risk tolerance. Buffalo First Wealth Management, LLC will provide ongoing review of your asset allocations and recommend appropriate changes. We also provide the rebalanced discipline necessary to help you capitalize on the inherent volatility of the financial markets.
How Do Investment Returns and Principal Values Fluctuate?
Investing in financial markets often involves a degree of uncertainty. One of the most important concepts to understand is how the investment return and principal value can change over time. Here’s a closer look at why and how they fluctuate:
Market Dynamics
- Economic Factors: Changes in interest rates, inflation, and employment rates can impact investment values. For instance, a rise in interest rates might decrease bond prices, affecting returns.
- Corporate Performance: The financial health and performance of the company in which you’ve invested play a critical role. A company reporting higher than expected earnings can lead to increased share prices, enhancing returns.
Supply and Demand
- Investor Sentiment: Fluctuations in investor confidence can lead to stock price changes. Positive news may drive demand and prices up, while negative news might have the opposite effect.
- Market Liquidity: The ease with which an asset can be bought or sold without affecting its price also contributes to its value fluctuation. More liquidity typically means smaller price changes.
Political and Global Events
- Government Policies: Policies such as tax reforms or changes in regulations can have broad impacts on market sectors, thereby influencing investment values.
- Global Events: Events like geopolitical tensions or natural disasters can cause market volatility, often leading to fluctuations in asset prices.
Investment Strategy and Timing
- Asset Allocation: The mix of various asset types (stocks, bonds, real estate) affects overall investment fluctuation. Diversification can help mitigate risks associated with market volatility.
- Time Horizon: Short-term investments are more susceptible to market volatility, whereas long-term investments may have the opportunity to recover from temporary downturns.
By understanding the various factors that lead to fluctuations in your investment’s return and principal value, you can make more informed decisions and better manage the risks involved.
Our Process
An experienced investment team led by our chief investment strategist, which includes a fixed income analyst, seasoned investment analyst, and alternative investment analyst, follows a disciplined, objective process to identify and select investments best suited to your portfolios. Our process includes both quantitative analysis and qualitative evaluation, which often includes personal interviews and visits with potential investment managers.
To help you navigate the diverse landscape of investment opportunities, we offer detailed information on a variety of funds tailored to meet your financial goals. Whether you’re interested in high yield options or looking to diversify with international selections, our fund categories are designed to suit different investment strategies:
- High Yield
- Discovery
- International
- Dividend Focus
- Large Cap
- Early Stage Growth
- Mid Cap
- Flexible Income
- Small Cap
- Growth
By choosing from these categories, you can access targeted information and insights that align with your investment preferences. Our comprehensive approach ensures that you have the necessary tools and knowledge to make informed decisions, enhancing your portfolio’s potential for growth and stability.