Our Approach

Our investment approach combines more than eight decades of market data, Nobel Prize-winning academic research and the latest discoveries in behavioral finance. The main objective is reducing risk through diversification, which we call asset allocation. We consider risk to be another word for volatility, the likelihood of a given investment fluctuating in value from year to year. Diversification is intended to reduce volatility.

To achieve diversification that reduces risk, we recommend allocating assets among the major classes of stocks, bonds, and real estate (and to a limited degree, cash, commodities and other alternative investments). Stocks are further divided between U.S. and foreign, large and small companies, and growth and value styles. We do not "time the market". Rather, we follow the discipline of "staying the course" through both the ups and downs of the financial markets (studies show, even in a declining market, it is risky to engage in "timing", as an investor who has stepped out of the market is likely to miss the opportunity to reenter in time to participate in the rebound). In addition, we exercise care to minimize income taxes and investments' expenses so that more of what is earned is retained in the account.