When it comes to managing our clients’ investments we have observed:

  • Not realizing the full gain in an up market is, over the long term, more rewarding than fully participating in a bear market. 
  • Long term investing should be about meeting life objectives and not about chasing the highest possible returns by trying to exactly time market highs and lows.
  • The future, by definition, is unknowable and consequently full of uncertainty and randomness. Historical data can be used as a guide, but rearview mirror investing is fundamentally flawed.
  • Regardless of how sophisticated the system, how voluminous and detailed the data, how thoughtful the process, or how brilliant the past performance, there is no assurance about a portfolio's outcome.
  • Market participants are irrational and will continue to overbuy in periods of exuberance and oversell in periods of extreme fear, ultimately exacerbating market volatility.
  • Securities are (generally) priced efficiently, and individual security selection or market timing adds little value over the long term. However, from time-to-time and within certain market segments, inefficiencies exist, and active managers can exploit the temporary mispricing of securities for above-average returns.
  • Market events are not normally distributed, and therefore, the portfolio should be invested to expect the unexpected.