Active investors disregard
some of history’s most important lessons. Nobel-prize winning
economic research remains largely untouched by both individual
and institutional investors who choose instead to rely on
the self-serving messages of active fund managers and brokerage
houses who profit handsomely from the erratic trading habits
of active investors. Nearly 300 years of scientific economic
research explains why investors in global capitalism reap
rewards commensurate with the risks they take. |
More than three centuries
of study from notable scientists and researchers regarding
risk, probability theory, statistics, the random nature of
prices and asset-pricing theories are summed up in the painting
below which artfully represents Adam Smith’s legendary concept
of The Invisible Hand. This portrait depicts Smith’s Invisible
Hand as it controls market forces. Willing sellers and
willing buyers make informed decisions based on all knowable
information and arrive at a price that is satisfactorily
agreed upon by both parties. These market forces are precisely
why capitalism works so well. |