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Our approach to investing is evidence based. It is grounded in decades of peer-reviewed research, Nobel Prize-winning ideas, and reality-tested principles. Relying on evidence and reasoning can help improve the odds of investment success in the long term.
What sort of competition do you face as an investor?
Daily Average Of World Equity Trading In 2015
|Number of Trades||Dollar Volume|
Do you have to outsmart the market to be a successful investor?
Financial markets have rewarded long-term, disciplined investors. People expect a positive return on the capital they invest, and historically, the equity and bond markets have provided growth of wealth that has more than offset inflation. Instead of fighting markets, let them work for you.
When you try to outwit the market, you compete against the collective knowledge of all investors. By harnessing the market’s power, you put their knowledge to work in your portfolio.
What are your chances of picking an investment fund that outperforms?
What if you choose a fund based on strong past performance?
Will making frequent changes to my portfolio help me achieve investment success?
Is international investing for you?
Is there a better way to build a portfolio?
Are fees and costs squandering your returns?
Let’s assume that your portfolio averaged 10% annually over the last 25 years. If you payed 2% in fees and commissions each year, your financial services firm, broker, and advisor would have pocketed almost half (43%) of the total investment returns. Even though you put up 100% of the capital and take 100% of the risk, you end up with only half (57%) of the returns.
Account Maintenance Fees
Frequent Portfolio Transactions
So, what should you be doing?
Markets work. They will inevitably go up and down. When they are turbulent, markets may seem irrational and out of control. Think of volatility in a way that is more applicable to your portfolio. Without volatility there would be no risk. And without risk there would be no expectation for reward. The growth of wealth is a much more important measure rather than short-term market fluctuations.
Since you can’t control or predict market outcomes, try instead to focus only on actions that add value:
- Create an investment plan
- Structure a portfolio that is based on your risk tolerance
- Use diversification to maximize portfolio efficiency
- Minimize turnover and expenses
- Ignore market headlines
- And manage your emotions when markets go up and down
Focusing On What You Can Control Can Lead to a Better Investment Experience