If you have read much of our work, you have probably noticed we embrace evidence-based investing. But what does that mean?

1) Evidence-based investors build and manage their portfolio based on what is expected to enhance future returns and/or dampen related risk exposures, according to the most robust evidence available. This includes Nobel prize-winning theory, historical evidence, and scholarly research.

2) Evidence-based investors maintain a long-term investment strategy, despite market volatility and uncertainties along the way.

Evidence-based investing is more than meets the eye. Behavioral strategies must be in place to support the evidence-based approach. Investors who take the evidence-based approach to investing do not try and time the market by jumping in and out of investments whenever volatility strikes. They also do not gamble their income on short-term, fad “investments” that come and go out of fashion.