We use asset allocation and modern portfolio theory to help reduce risk in a portfolio to seek a higher return. Asset allocation does not insure a profit or protect against a loss. The modern portfolio theory is a theory on how risk-adverse advisors can construct portfolios in an effort to seek an expected return based on a given level of market risk, emphasizing that risk is an inherent part of a higher reward. Investing involves risk including the potential loss of principal. No strategy assures success or protects against loss.