Success is the goal
You want to have enough money to lead the life that you want. It's as simple as that. If you go out there, roll the dice, and try to become super rich, you’re taking unnecessary risks just to beat a market that's stacked against you. While the opportunity for success exists, it comes with the risk of catastrophic failure, and failure is not an option.
The Invst philosophy: you’ve worked hard to save your money. It should be managed to optimize the likelihood of success over the long-term. Broadly diversifying your investments, being careful about taxes and investment costs, and making sure you protect against downside are the keys to success.
By using carefully constructed portfolios, applying momentum and trend following where appropriate, the goal is not to beat the market, but to manage downside risk, reduce drawdown and volatility, manage poor investor behaviors, and empower you to live the life you want. Invst exists to help you reach your full financial potential.
What doesn’t work:
- Market Timing
- Stock Picking
- Performance Chasing
- Track Record Investing
- Speculating and Gambling
Investment performance erosion factors:
- Investor Behavior
- Hidden Costs
- Over Diversification
Dangers that lie ahead:
- Sequence of Return Risk
- Longevity Risk
- Life Events
- Technological Changes
The Invst Approach
Invst strategies combine reality (evidence) with theory to create a better investment experience for clients. Here are some truths we’ve discovered and use with our investment strategies:
- Being too aggressive can create too much volatility for investors to stick with it
- Why sell good stuff just to buy bad stuff?
- Investor financial behaviors are often counter intuitive. Sticking to a rules-based, disciplined approach helps coach through good investing
- Every smart investor looks at the downside first, not the upside
- Investing based on evidence is more viable than those which adhere to just one theory
- Global asset diversification is important
- Simplifying the investing experience is the key to long-term success
- Address real life situations with investment decisions – no one invests with a 30-year horizon. Life happens!
Save the Investor
In 1992, Nobel Prize-winning economist Eugene Fama and Ken French created the 3-Factor model to describe stock returns: 1) Company Size, 2) Value, and 3) Market Risk. In 2015, they extended the model to 5, adding Profitability and Investment.* We believe momentum, identified by Fama and French as the persistent market anomaly, is the sixth factor. For this reason, we named our investment strategies Factor VI.
As an early adopter of new and improved research, JarredBunch - the investment engine behind Invst - has developed several rules-based investment strategies that we feel address the behavioral and return goals of our clients. The goal is to maximize returns and limit downside risk. While we can never eliminate drawdowns, risk, and volatility we can apply proven principles that limit investor exposure and capture upside potential.
One of our core beliefs is that wild fluctuations in the market can kill your returns. These volatility gremlins, best described by Ed Easterling in Unexpected Returns, erode your compound returns over time leaving you with less money. The beauty of our momentum strategies lies in avoiding the big declines. By reducing volatility and increasing the consistency of investment returns, you will realize higher compounded returns and a less stressful investment ride.
We look forward to helping you achieve your full financial potential.