Why aren’t all investment advisors using this academic, scientific, Nobel Prize winning approach?
Most investment advisors receive commissions based on selling stocks, bonds and mutual funds, most of which are, promoted by the large brokerage firms. The large brokerage companies make money by charging fee’s and commissions on every transaction, therefore they encourage and promote buying and selling. The academic approach is based on buying and holding (Passive Management) properly diversified broad asset classes, not (Active Management) hyper-active buying and selling. Simply stated the big brokerage firms can’t make money if you don’t buy and sell.
