IFA
Index Porfolio 90
IFA
Index Porfolio 70
IFA
Index Porfolio 50
IFA
Index Porfolio 30
IFA
Index Porfolio 10
Step 2 - Nobel Laureates
DEFER
TO THE HIGHER KNOWLEDGE OF NOBEL PRIZE WINNERS
Summary: Many academics have earned Nobel Prizes for their research and explanation of how stock markets work. Their findings lack bias, as these Nobel Laureates aren’t trying to earn a commission or sell magazines and newspapers. More than a hundred years of academic research points to index funds as an investor’s best investment. Sadly, the great majority of investors have never read these academic studies, and continue to actively invest.
Active investors disregard some of
history’s most important lessons. Nobel-prize winning economic
research remains largely untouched by both individual and institutional
investors who choose instead to rely on the self-serving messages of
active fund managers and brokerage houses who profit handsomely from
the erratic trading habits of active investors. Nearly 300 years of
scientific economic research explains why investors in global capitalism
reap rewards commensurate with the risks they take. |
More than three centuries of study
from notable scientists and researchers regarding risk, probability
theory, statistics, the random nature of prices and asset-pricing theories
are summed up in the painting below which artfully represents Adam
Smith’s legendary concept of The Invisible Hand. This
portrait depicts Smith’s Invisible Hand as it controls
market forces. Willing sellers and willing buyers make informed decisions
based on all knowable information and arrive at a price that is satisfactorily
agreed upon by both parties. These market forces are precisely why
capitalism works so well. |
Additional Charts and Graph from Step 2
 Who Do You Trust |
 Market Force |
| < Step 1 - Active Investors | Step 3: Stock Pickers > |
