We all want answers to unknowns; it is only human. We seek out “experts” who oh so gladly opine about what is yet to come. We hope these “experts” can remove the uncertainty and allow us to avoid unnecessary risk. We crave clairvoyance.
Seek First to Understand
Investing, at its core, is an act of faith in the future – a future that is unknown. What could possibly be more scary than that? Perhaps this is why so many investors fall prey to the “clairvoyance canard.” Brokers, ahem… “advisors” provide assurances that their analysts are indeed actual wizards, able to predict the future. Mind you, no one else can forecast the future, but they have managed to “break the code” and you, dear customer / client, feel privileged to be the beneficiary. Don’t buy it.
Instead, start by understanding what we know (market history); what we don’t know (exactly what will happen in the future); and a reasonable approach for melding one into the other. You want to avoid trying to outguess the markets and instead focus on long-term investing. Above all else, you want to accrue what the capital markets provide over time, real (above inflation) investment returns.
Evidence Based Investing
When you dismiss speculation, investment decisions become more focused on your goals and the risks worth taking in order to achieve them. Financial science helps identify the sources of returns and we, as your advisor, help structure the approach. The end result is enhanced clarity about what is known, and less worry about what is unknown.
By ignoring the “clairvoyance canard,” you invest where there are expected returns and avoid investing where there are no expected returns. It is not in your best interest to place trust in predictions about matters that are unpredictable. You become a better investor as soon as you reach that conclusion. The evidence-based investing approach that we use for our clients puts you in control, not some forecast or prediction.
When you are ready to take control of your financial destiny, we are here. We provide advice without conflict or compromise. Ready for a real conversation?