## WiseBanyan’s Investment Strategy: A Focus on U.S. Stocks
WiseBanyan is a digital investment advisor that offers personalized portfolio management services to its clients. The company’s investment strategy is based on a combination of modern portfolio theory and behavioral finance. WiseBanyan’s portfolios are typically composed of a mix of U.S. stocks, bonds, and exchange-traded funds (ETFs).
### Why WiseBanyan Focuses on U.S. Stocks
There are a number of reasons why WiseBanyan focuses on investing in U.S. stocks. First, U.S. stocks have a long history of outperforming international stocks. Over the past 10 years, the S&P 500 Index has returned an average of 9.8% per year, while the MSCI EAFE Index (which tracks international stocks) has returned an average of 6.1% per year.
Second, U.S. stocks are more diversified than international stocks. The S&P 500 Index includes stocks from a wide range of industries and sectors, which helps to reduce risk. International stocks, on the other hand, are often concentrated in a few sectors, such as energy and materials.
Third, U.S. stocks are more liquid than international stocks. This means that it is easier to buy and sell U.S. stocks, which can be important in volatile markets.
### WiseBanyan’s Investment Process
WiseBanyan’s investment process begins with a comprehensive risk assessment questionnaire. This questionnaire helps WiseBanyan to determine the client’s investment goals, risk tolerance, and time horizon.
Once WiseBanyan has a understanding of the client’s needs, the company will create a personalized portfolio. WiseBanyan’s portfolios are typically composed of a mix of U.S. stocks, bonds, and ETFs. The asset allocation of each portfolio is determined by the client’s risk tolerance and investment goals.
WiseBanyan’s portfolios are rebalanced on a regular basis to ensure that they remain aligned with the client’s risk tolerance and investment goals. Rebalancing involves selling assets that have appreciated in value and buying assets that have declined in value. This helps to reduce risk and improve returns.
### WiseBanyan’s Performance
WiseBanyan has a strong track record of performance. The company’s portfolios have outperformed the S&P 500 Index over the past 5 years.
**Here is a table showing the performance of WiseBanyan’s portfolios over the past 5 years:**
| Portfolio | 5-Year Return |
|—|—|
| Conservative | 5.4% |
| Moderate | 7.2% |
| Aggressive | 9.1% |
### Conclusion
WiseBanyan’s focus on U.S. stocks is a sound investment strategy. U.S. stocks have a long history of outperforming international stocks, they are more diversified, and they are more liquid. WiseBanyan’s investment process is also sound. The company uses a combination of modern portfolio theory and behavioral finance to create personalized portfolios that are designed to meet the needs of its clients. WiseBanyan’s performance has been strong, and the company has a track record of outperforming the S&P 500 Index.