Being a data driven, scientifically-minded investment manager, we've always been uncomfortable making decisions that did not have a solid basis. Our study of behavioral finance and market history, as well as nearly three decades of experience managing money tells us our brains often can play tricks on us. This realization has prevented us from using any non-scientifically based methods in the past. Apparently Wall Street does not have the same reservations because nearly every firm is confidently predicting how the Coronavirus will spread (or stop spreading), what the impact will be for the economy, and what that means for corporate earnings.
We're always looking for new ideas and since Wall Street is literally GUESSING about the near-term and long-term impact of the Coronavirus will be, we thought we'd try some new methods. Take a look:
While it was fun to come up with those ideas, we decided we should stick to what has made us successful – a data driven, scientifically designed approach. We recently hosted a Market & Economic Update webinar where we discussed what the DATA says and how our investment models are designed to adjust to whatever outcome we might see.
If you don't have time to watch the entire presentation, click here for the key takeaway.
Remember, we have a plan for whatever happens. Unlike Wall Street, we aren't just guessing. We've managed through all kinds of "unprecedented" market environments and know the only way to be successful is to follow a data driven, scientific process.
If you want to learn more about our Behavioral Approach and how it helps us in times of uncertainty, our next SEM University will focus on this. You can sign-up here.