Is Investing a Science?
The market is unpredictable; however, there is a mountain of data and proven practices when it comes to investing.
If you haven’t started investing, you should. You don’t have to be an expert on the stock market to make wise investments, but you do have to start. The best way to start investing is to talk to a financial advisor that is looking out for your best interest. There are a few different investment approaches to choose from. You want to safeguard your assets and get a good return, but how do you know if you’re making the best financial decisions? Some people say investing is a science. Want to know what we think? The short answer is yes.
What does science have to do with investing?
Science is from the Latin word scientia, which means “knowledge.” Science is a branch of study that deals with facts and truths showing the operation of general laws gained through observation and experimentation.
In short, science creates evidence, which is why Cogent Strategic Wealth recommends an evidence-based approach to investing.
Download this FREE PDF “7 Reasons Why You Need an Evidence-Based Strategy to Achieve Your Financial Goals” - to help you get peace of mind when it comes to your financial future.
Science has fueled the continuous exploration of our world, leading to breakthrough discoveries that touch every aspect of our lives, including the way we interact, travel, and even invest our money.
Researchers devote their lives to understanding all they can about how our world works. Before we learned how to see inside the human body, diagnostic medicine was little more than a guessing game - but science changed that. Technology keeps improving and developing new ways to diagnose and treat patients.
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How science can help us create a better financial future
Studying what drives stock prices was a nearly impossible task until computers became available to us just fifty years ago. Since then, new technology-enabled researches to perform statistical analysis on vast amounts of data.
Professor Eugene Fama pioneered the use of computer technology to analyze the behavior of security prices, developing a new framework to study financial markets. Professor Fama was honored with the 2013 Nobel Prize in Economic Sciences. His research along, with the work of others, such as Kenneth French, Robert Merton, Myron Scholes, and Merton Miller, has led to a deeper understanding of where returns come from.
Science has led to tremendous progress in how we see and understand the world. From medicine to transportation, and communications to investing money; science can help create a brighter future, even in your finances.
You’ve worked hard for your money, and now it’s time to make your money work for you. Don’t leave your financial future to chance. We help high-achieving individuals, like yourself, develop clear goals for your financial future and guide you in taking the right steps to achieve them.Schedule a call with Cogent Strategic Wealth today so we can begin customizing a plan for your financial future.