Every profession relies to a certain extent on a knowledge framework that is the product of thousands of hours of empirical research conducted by the academic community. Financial planning and wealth management is no different. Silverhall Wealth is an ‘evidence-based’ Wealth Management firm which builds its process and approach on a large body of work in fields such as finance, investment theory, behavioural finance, and economics. Evidence-based investing is the process of making investment decisions based on decades of research by academia on asset pricing data. Rather than looking at short term market trends or the current economic or investment climate evidence-based investing is rooted in long term observations of the markets. As modern wealth managers we are able to benefit from 70 years of research into the nature and behaviour of global stock and bond market returns. Since the 1990’s cross-disciplinary work in psychology and finance gave birth to Behavioural Economics/Finance. Since 2000 many academics have started to study non-listed and alternative assets to provide insights into the risks and returns available from these more opaque asset classes. Stock market price databases have been reconstructed back to the 1870’s and economic historians have provided a vast literature of economic history and folly. This vast resource of data and research provides us with the principles we apply to managing your wealth. At Silverhall Wealth we spend over a hundred hours a year reviewing the new research being produced in the academic community and considering its application to our framework and our clients.
