The Science of Investing…from the Halls of Academia
An enormous Industry has developed over the years that's very familiar to all of us. It's called Wall Street. This whole industry is based mainly on the notion that somebody can peddle investment advice to people that predicts the future. In addition, numerous magazine articles and books on investing have been written over the years, and cable TV investing programs have been created...all of which in one way or another, attempt to divine the future. As unusual as it seems, this has always been the conventional approach to investment advice.
However, over the years, an entirely new approach to investing has been developing...not at Wall Street firms, not at banks or insurance companies, not at pension funds, but instead, in the halls of academia...at places like the University of Chicago, Dartmouth, Stanford, Yale and MIT.
The academic body of knowledge developed at these universities has taught us some very interesting things about investment markets, and has made some assertions that, when first put forth, were ridiculed...dismissed as total nonsense by the so-called investment experts of the day.
Today, however, these ideas have become more powerful...and much more difficult to refute...
And the reason is this: the academics have developed an approach to investing that's based not on speculation, and attempting to predict the future... but rather on decades of research, and on the science of capital markets...a strategy that has been trial-tested in academic labs and time-tested in actual portfolios.
The ultimate goal of this research: to deliver the performance of capital markets, and increase returns through state-of-the-art portfolio design and trading. To this day, thanks to ongoing research in the academic community, the model continues to evolve.