The Investment Hoax

It seems that the investment industry is based on the false premise of the ability to forecast market direction, stock prices, and other financial prognosis, in order to gain advantage over owning the entire market. They are basically guessing, gambling, and speculating with your money in the hopes of a quick appreciation. If they do not do well and gather assets, then they actually liquidate that fund and bury it in another fund. Meaning your investments might disappear right before your eyes. Here at Investment Strategy Advisers, we want to make sure that doesn't happen to you.

What is against your profitable investment experience when working with other advisers:

  • The Industry: Excessive profits that they don't tell you about (churning), are reducing your portfolio performance while enhancing their alleged professional expertise and branding image.
  • The Media: Creating revenue to them at your expense so that you react to short term results for long term planning.
  • Your Emotions: Fear and greed and the emotional decisions you make because you want to defeat the returns the market gives you, because it feels good to do the wrong thing.
  • Active Management: It is nice to believe that someone is helping you beat the market, while this is something that is not done regularly by anyone and is not repeatable.
  • Fear of the Unfamiliar: No sense of urgency or belief it is the way it is; all funds are the same; it is too complex to understand.

Beliefs needed to invest well:

Investment Strategy Advisers and its vendors have an investment philosophy which is the stable foundation upon which all financial decisions regarding clients' portfolios are based. This philosophy has two components: Market belief and investment strategy.

Market belief- Market belief means the market is efficient, based on supply and demand and it is the best determinant of price. All available information is factored into the current price, and therefore, only new, unknowable information and events change pricing.

Consistently predicting market movements and capturing additional returns unrelated to risk is not possible for any entity or person. Based on this belief, Investment Strategy Advisers and its vendors:

  • Focus on capturing market returns.
  • Utilize asset class or structured funds.
  • Diversifies efficiently.
  • Eliminates stock picking, track record investing and market turning from the investment process.

Structured market portfolios- Structured market portfolios utilize free market portfolio theory. It is the combination of three evolutionary academic breakthroughs in the area of modern finance.

  • Efficient market hypothesis- Market prices equities efficiently.
  • Modern portfolio theory- A mix of many asset classes with dissimilar price movement to reduce risk.
  • The three factor model- Recognize three independent dimensions of equity returns:
    • Market- Stocks vs. fixed income
    • Size- Small (more risk) vs. large companies
    • Value effect- More risky companies give higher returns rewards for risk taken.

Dave Tolley has many tools to help you understand the industry and better position your investments to get market rates of return with peace of mind.

Through an MRI analysis (benchmarking study) on your current portfolio, he can expose all costs (including hidden), stock overlaps (same stocks in funds), holdings analysis, a portfolio analysis showing risk, returns against the market and actual returns.

In addition, he uses the Twenty Must Answer Questions system to give his clients all the information and correct beliefs needed to invest effectively and efficiently. It will also help them stay the course with peace of mind and get growth in market rates of return.

Doing the right thing is the only thing to do. Why would you give 30% of your wealth away to the industry profiteers?

Benefits to using our sane system:

  • Low cost, low turnover, asset class funds are purchased to get market rates of return.
  • Academically based risk reward in a structured model with a long track record (50 years).
  • True effective diversification models utilizing stocks, bonds, and cash worldwide are designed based on the true risk assumed, leaning to small, and distressed companies around the world to reward us for the risk taken.
  • Belief in the efficiency of the markets, that all stocks are priced fairly on their actual value, and the markets are completely random with no trend or pattern.
  • Belief in resilience of capitalism to innovate efficiently and raise the standard of living of all.
  • No belief in gambling with your investment!
  • The system is not exciting, which means we do not make irrational decisions to upset the science, risk and structure of the model.
  • By using Investment Strategy Advisers, as your investment educator and coach, we can help maintain discipline, so that you will achieve market returns and premiums for the risk taken. With us you are guaranteed market results over time, and peace of mind with your investments.