The Financial Coaching Group’s traditional investment philosophy is based on Nobel-Prize research and 50+ years of academic studies on financial markets.
Our desire is for each Financial Coaching Group client to have a successful investing experience. We believe this is best achieved by investing in a globally diversified portfolio of low-cost, institutional asset class funds, selected for your specific risk tolerance and circumstances. History proves that this approach is prudent and it works. We believe that markets are generally efficient. This means that:
- Based on supply and demand, the market is the best determinant of price.
- All available information if 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 individual or entity.
The Feedback Loop
We believe in Markets, not Managers. Market performance is primarily determined by asset allocation, NOT stock picking or market timing.
We believe that prudent and global diversification reduces risk. We believe that this philosophy can reduce risk, costs, taxes and expenses. Diversification is an essential tool available to investors. It enables them to capture broad market forces while reducing the uncompensated risk associated with individual securities. We have constructed strategies that seek to draw heavily upon this philosophy.
Most investors do NOT realize there is a choice to be made about market belief, nor that this belief significantly affects investment strategies. Without this knowledge, it is easy to be manipulated by media, advertisers and investment professionals who want to sell products.
The Power of Diversification
We believe that an investor should exercise patience and discipline. We believe that by working with an independent registered investment advisor you avoid conflicts of interest.
Next: Does Risk = Opportunity?
