Our investment approach is grounded in academic research
and has evolved over many years in response to changing financial conditions. Below you will find
some of the core beliefs and principles at the heart of Model Investing.
Our strategies are aimed at helping investors accumulate and grow their wealth over a long time
horizon. We do not cater to the get-rich-quick mentality, and as a result do not provide individual
stock picks or try to capitalize on short-term market moves. Instead, we focus on earning the
highest risk-adjusted returns over multiple market cycles.
A key component of our approach is avoiding severe market downturns
associated with economic recessions. During the dot-com collapse and the great financial crisis,
many investors lost over half their wealth. Avoiding these severe setbacks will put you on the fast
track towards reaching your financial goals.
Momentum is not well understood by the everyday investor, but its application is crucial for any
successful investment strategy. Driven by behavioral psychology, this anomaly has persisted for
hundreds of years and has rendered many individuals wealthy, and others poor, simply based on
whether the concept was understood and applied.
If you’re familiar with the concept of a trend, you intuitively understand how momentum works.
Successful traders rely heavily on momentum, but they are too often focused on short-term momentum
and miss reaping the benefits of longer trends that are driven by the business cycle.
Many of the investment strategies recommended by financial professionals today are relics of an older
time. The financial markets are constantly evolving, and we must evolve with them. Increased
volatility (risk) in recent years has rendered some approaches (such as buy-and-hold) more perilous
than ever before. While investors still need to maintain a long-term focus, they now must be much
more flexible and attentive to changing conditions.
Asset allocation is a major area of concern, particularly the perceived safety of bonds. There is a
widespread belief that bonds are safe investments regardless of the economic climate. While this may
have been the case in recent decades, bonds have a dark history and investors need to tread
carefully here. Don’t buy into outdated concepts that can’t hold up under rigorous scrutiny.
Unlike many other investment services and most brokers, our money is invested in the recommendations
we provide. Our client’s and our incentives are aligned for the sole purpose of generating the
highest risk-adjusted returns … we wouldn’t have it any other way.
At the end of the day, most investors are looking for a straight-forward way to achieve financial
security. They want to be able to retire comfortably, and fall asleep at night knowing their money
is working hard for them and not exposed to excessive risk.
Our investment models are easy to follow and are specifically designed for those investing through a 401(k), the Thrift Savings Plan (TSP), or Individual Retirement Accounts (IRAs). Try us out today and see for yourself the clarity, peace of mind, and enhanced returns they can provide.
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