Evidence-Based Strategies For Long-Term Success
an evidence based approach to investing
In the construction of our portfolios, we employ a long term approach backed by decades of research. Our evidence based approach has 5 key principles with the goal of providing you an excellent investment experience.
1) Let Markets Work For You
The evidence is clear. Financial markets have rewarded long-term investors. You expect a positive return on your investments! A long-term approach is the best way to capture returns. Historically, the equity and bond markets have provided growth of wealth that has more than offset inflation.
2) Utilize decades of research to form your investment strategy
When we look at the research and the history of the market, evidence shows us the following is true over a long period of time:
- Stocks outperform bonds
- Small Cap companies generally outperform Large Cap companies
- Value stocks outperform Growth Stocks
- Highly profitable companies out perform lower profitable companies
3) Intelligent Diversification
Diversification helps take advantage of well performing investments while reducing the risk of poor returns. Don't put all of your eggs in one basket! This includes en emphasis on owning a global portfolio with a mixture of stocks, bonds, and tangible assets such as real estate and commodities.
4) Avoid Market Timing
Consistently predicting the tops and bottoms of market cycles is impossible. It is well documented that short term market timing often results in under-performance. Instead of short-term market timing we provide intermediate term market outlooks based on macroeconomic indicators and well respected long term valuation metrics on stocks and bonds.
5) We Focus on What We Can Control
- Implement an investment strategy that aligns your risks and your financial goals
- Structure your portfolio using an evidence based approach
- Diversify across the globe
- Manage expenses, fees, turnover, and taxes
- Stay consistent though market highs & lows to avoid unnecessary risk
- We deliver consistent and frequent client communication to continually build our client's own discipline which will help them avoid future emotional investment decisions that often hurt performance