posted on May 31, 2016 12:00
Science has produced many tremendous advances, from lifesaving medical treatments to instantaneous communication. Historically, though, science has had little influence on investing. Instead of keeping pace with advancements in modern portfolio theory along with historical and statistical evidence, investors and money managers often rely on conventional wisdom and flawed assumptions. How can investors sort through the vast amount of available data to maximize after-tax return and minimize risk? This paper provides a framework called Evidence-Based Investing that can provide investors optimal outcomes based on compelling scientific evidence.