Why Silicon Valley Capital Partners takes a global approach
Table 1 illustrates that from 1969 through 2003, a global approach provided growth opportunities to investors with less regional risk than having a single approach limited to the US, European or Asia Pacific regions. Although a global approach outpaced the US, Europe and Asia Pacific markets, the benefits to a global strategy extend well beyond just returns.
Regional risks that face investors today include politics, job growth, inflation, interest rates and currency trends. A global investment strategy can be utilized to mitigate investment risk by diversifying across several regions. By allocating a global portfolio intelligently, known risks can be contained or simply avoided. A global strategy can also help to contain unknown risks by limiting investments to specific regions.
With this in mind, a global investment approach can effectively provide attractive growth opportunities with reduced regional risk.
* Hypothetical value of $1,000 invested at year-end 1969. Global portfolio represents an equal investment (1/3) in each asset class.
** Risk is measured by standard deviation. Risk and return are based on annual data over the period 1970-2003. ARE NOT INSURED BY FDIC OR ANY FEDERAL GOVERNMENT AGENCY
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