Our beliefs
What We Know To Be Important And True
A word on beating the market
If you believe, like we do, that no one can accurately predict future security prices of market sectors or asset classes, or accurately time the market, then why would you be willing to pay someone to try to do what you think cannot be done?
Why do Wall Street firms and their advisors continue to ask clients to pay billions of dollars every year to predict something that studies show they can’t accurately predict on a consistent basis?
We argue it is because it is in their shareholders’ best interests, not their clients’.
Consider this statement: it is very hard to make a person see a truth when their job is based in that truth not being true.
Sometimes this is referred to as institutional blindness.
Market research points to a preponderance of evidence that no one can accurately predict individual stock prices in any given period. This is because the change in prices is driven by news, which is unknowable ahead of time.
Evidence also shows that no one can accurately predict which market sectors will perform best in any given period, or when to get out of stocks before they drop, or get back in before they go up. Additionally, no one can accurately predict the performance of asset classes, or whether US stocks will do better than bonds, cash, or international stocks in any given period of time.
This quote from Rex Sinquefield sums up our feelings on the issue, “As far as I can tell, the only groups of people who don’t believe that markets are efficient and that capitalism works are the North Koreans, the Cubans, and active money managers!”
At Gaynes Financial Services, we are dedicated to offering independent, comprehensive, customized financial guidance.
As fiduciaries, we are ethically bound to act in our advisory clients’ best interests, and it is a responsibility we take to heart.
If you have any questions about our core values and beliefs, please contact our office at 770-363-6350 and set up a time to talk.
