Tag Archives | evidence-based investing

Index Investing: Opportunities & Obstacles

Legend has it, a pharmacist named John Pemberton was searching for a headache cure when he tried blending Coca leaves with Cola nuts. Who knew his recipe was destined to become such a smashing success, even if Coca-Cola® never did become the medicine Pemberton had in mind? In a similar vein, when Charles Dow launched […]

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Behavioral Factors That Influence Investment Decisions

In my previous post we looked at the four keys to understanding factors that impact investment risk and return. Here we’ll explore the human factors that influence investment decisions more than you might think. No matter how much discipline and empirical research they have at their disposal, the clear majority of investors have difficulty sticking […]

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4 Key Factors That Impact Risk & Return

In my last post, we explored the nuances of diversifying your portfolio. In this video, we’ll explore why you should be compensated differently for investing in different types of asset classes. We’ll also explain why the true evidence-based investing our firm advocates is more powerful than mere surveys, studies and research reports so often touted […]

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The Power of Diversification

In my last post we discussed the three key concepts that determine the price of an individual security.  Here we’ll explore the importance of diversifying your investments. More than five decades of academic research has confirmed two key benefits of diversifying and they’re among the most powerful concepts in financial economics: (a) Having a diversified portfolio […]

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3 Key Concepts That Successful Investors Understand

As a 30-year veteran of the financial markets, I’ve been through just about every market cycle and heard every sales pitch that’s come along. What’s become clear to me over the past three decades is that no matter what the media or the financial services industry tells you, evidence matters. And, evidence combined with process, […]

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Simplicity can pay big dividends in Fishing and Investing

Key Takeaways Whether fishing or investing, don’t get seduced by fancy, but unnecessary new products on the market. Complexity is a formidable enemy for both the fly fisher and the investor. Reducing complexity and cost is the key to success in both endeavors.   There are a bewildering number of choices when you select a […]

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New Market Highs & Positive Expected Returns

There has been much discussion in the news recently about new nominal highs in stock indices like the Dow Jones Industrial Average and the S&P 500. When markets hit new highs, is that an indication that it’s time for investors to cash out? History tells us that a market index being at an all-time high […]

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