Investment Management
All our clients care about investment strategy and getting consistent performance over time. The world we all live in is complicated and uncertain. No one can successfully know when the market will be up or down over time. At Johnson Lyman, we don’t try to predict how the market will behave. Our investment discipline allows you – and us – to focus on the important investment factors that are under your control, including the risks you take, the costs you incur, and the timing of taxes you pay. And we work hard to protect you from things you can’t control, like the performance of a particular company or industry here, or overseas.
Market Approach
In-depth research and decades of data reveals strategies we can use to help you “beat the market” over time. We don’t achieve that by market timing or stock picking. Instead, we weight your portfolio by characteristics of the stock and bond markets that our research indicates have higher expected returns over the long-term. We utilize both economic theory and academic research findings to evaluate this approach.
Above you see an unweighted index fund which purchases stocks in equal proportions across the entire market – represented above by all spheres shown in a consistent size – regardless of the expected return of a particular class of stocks.
Our Approach
Our clients’ portfolios are engineered to find and invest in elements of the stock market that have higher expected returns. This enables us to shift the odds of capturing higher expected premiums over time.
Our process is disciplined and repeatable. It doesn’t depend on any one person’s ability or intuition. It is based in economic theory and has been confirmed by the preponderance of historical data on stock and bond market returns. This practice places staggering resources and intelligence at your disposal to create a wonderful investment experience over time. We combine disciplined process, financial knowledge, and a clear understanding of your own life goals and risk factors to maximize the probability of good outcomes.
Here, you see a fund which invests more in classes of stocks with higher expected returns – illustrated by the larger spheres on the left – and invests less in classes of stocks that are expected to return less over time – illustrated by the smaller spheres on the right.
While technical investing is at the heart of what we do, aligning your life and goals with your investment income is our true purpose. That is how we inspire and empower you to create your best life.