Dive deeper into our practices, methodologies, and investment ideologies.

Table of contents

Understanding Behavioral Finance

The concept of "behavioral finance" is the primary driver behind how we create our portfolios. Learn more about what "behavioral finance" is, where it came from, and how it applies to investment and wealth management

Link to whitepaper: Understanding Behavioral Finance

The Inevitable Bear

Bear markets are an inevitable part of investing. As humans, we tend to underestimate the likelihood of an event the longer we go without experiencing that event. In other words: you better prepare for the bear or he's gonna mess you up, son.

Link to whitepaper: The Inevitable Bear

Investment Grade Junk

One person’s financial assets are another’s financial liabilities (i.e., promises to deliver money). When the claims on financial assets are too high relative to the money available to meet them, a big deleveraging must occur.

- Ray Dalio, Big Debt Crises

To fight the financial crisis, the Federal Reserve resorted to unprecedented measures in their attempt to save the financial system and spark economic growth. They cut interest rates to 0% and created nearly $4B of money to purchase bonds from the Wall Street banks. Stocks recovered, but the economic expansion has been the worst on record.

Link to whitepaper: Investment Grade Junk

Switching from Commissions to Fees

Commission-based advisors earn their income solely from selling products or opening accounts, meaning these advisors earn more if they sell more. In contrast, fee-based advisors earn their income from the pre-stated fee they receive for their services – the fee can be a flat fee or an hourly fee.

What happens when an advisor’s income is only based on commissions? The advisor isn’t always focused on what’s best for their client. Although a fee-based model isn’t perfect, there are more advantages for both the advisor and the client than with commissions

Link to whitepaper: Switching from Commissions to Fees

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