A Risk-free Investment With High Expected Returns
For much of the past decade, I have been on a mission to persuade you to fundamentally change the way you invest. It’s my firmly held view that the road to financial perdition begins with a call to a broker or adviser who claims to be able to “beat the markets.”
I am not alone in this effort. I have followed in the footsteps of John Bogle, Burton Malkiel, Jason Zweig, Larry Swedroe, William Bernstein, Rick Ferri, Mark Hebner and many others, all of whom have written excellent books marshaling the arguments for “evidence-based investing.”
Evidence-based investing is premised on hundreds of peer-reviewed studies and Nobel Prize-winning research. The good news is this form of investing is simple to implement: Determine your asset allocation (the division of your portfolio among stocks, bonds and cash) and invest in a globally diversified portfolio consisting solely of low-management-fee index funds, passively managed funds or exchange-traded funds.
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