Don't Get Burned By The Hot Hand

Stock and bond market returns have historically been quite generous, but that doesn't stop many professionals and fellow CFA charterholders from reaching for more by pursuing a selection and timing approach to beat the market.  Yet, unlike other walks of life where the smartest and/or most experienced tend to achieve the best results, all of the evidence in investment markets finds that "active management" doesn't outperform by any more than we'd expect by random chance.  One of the many ways that Servo shifts the odds in our clients' favor is by shunning this common yet failed approach to investing and instead siding with the research and evidence of what works.

To see more on this topic, watch the short video below.