It’s time to take an Evidence-based Approach to Your Investments

An evidence-based approach to your investment portfolio has a special focus on understanding the investment best practices and body of knowledge defined by the last 50-plus years of academic and practitioner research. This research is ongoing and continues to guide those who apply evidence based investing.

Importantly, this strategy is NOT defined by what is often referred to as an “active management” approach which revolves around what a so-called expert “thinks” markets, the economy or interest rates are going to do. Active management has been shown to be counterproductive and unreliable way to achieve investment goals.

At Copper Leaf Financial we believe that there are six key tenets associated with evidence-based investing (EBI).

  1. Outperforming the market is difficult.
  2. Size, value and momentum tilts can increase expected return.
  3. Global stock market diversification is the starting point.
  4. The primary role of fixed income is to reduce portfolio volatility.
  5. Academic evidence supports modest use of alternative investment strategies.
  6. EBI slowly evolves over time.

For more information see the blog post “What Is Evidence-based Investing and Why Should You Care?

If you are looking to start using EBI in your portfolio we can help you. With offices in Rutland and Williston, Vermont Copper Leaf Financial develops a customized wealth management plan designed to integrate every aspect of your financial life. Our approach is to provide clarity and calm amidst the chaos. Where there is uncertainty, we look for facts. We call our approach evidence-based investing. Call us today at 802-878-2731 to schedule a strategy session and begin building your road map to financial success.