Investment Management
After developing your retirement roadmap, Sonas Financial will create a custom portfolio for every client that reflects their financial goals.
We believe the primary goal in investing should be to harness the power of financial markets – not try to outguess them. While most of the investment industry tries to sell stock-picking and market-timing (i.e. active management), over 70 years of peer-reviewed, empirical research shows that investors chasing individual stocks almost never achieve positive long-term portfolio performance.
Instead, we utilize an evidence-based approach to investing that focuses on diversification, discipline, minimizing costs, and reducing taxes. This approach minimizes risk and allows our clients to capture their share of the returns the market generates. Most importantly, structuring a portfolio in this way gives clients the best chance at reaching their financial goals.
We believe in:
The power of markets
Smart diversification
Full transparency
Applying insights from financial science to make data-driven and time-tested decisions
We practice:
Indexing
Portfolio rebalancing
We DO NOT:
Experiment or invest based on a gut feeling
Attempt to time the markets
Outguess the market
Trade on stock tips
Our approach creates a portfolio intended to maximize growth and stability and minimize risk and emotion.
A Word on Beating the Markets
If you believe, like we do, that no one can accurately predict future security prices of market sectors or asset classes, or accurately time the market, then why would you be willing to pay someone to try and do what you think cannot be done?
Why do Wall Street firms and their advisors continue to ask clients to pay billions of dollars every year to predict something that studies show they can’t accurately predict on a consistent basis? We argue it is because it is in their (or their shareholders’) best interests, not their clients’.
Consider this statement: it is very hard to make a person see a truth when their job is based that truth not being true.
Sometimes this is referred to as institutional blindness.
Market research points to a preponderance of the evidence that no one can accurately predict what individual stock prices will do in any given period because what drives the change in prices is news, and news is unknowable ahead of time.
Evidence also shows that no one can accurately predict what market sectors will perform best in any given period, when to get out of stocks before they drop or get back in before they go up, and that no one can accurately predict the performance of asset classes (whether US stocks, bonds, cash or international stocks) in any given period of time.
Disclosure: Asset allocation and diversification do not assure or guarantee better performance and cannot eliminate the risk of investment loss. With any investment strategy, there is the possibility of profitability as well as loss.
Please read our important disclosure information.