Ariadne Wealth Management approaches investing like a science, although sometimes investing is more complex than math alone. Sometimes it’s human. Human behavior and the flaws inherent in human thinking affect not just the novice investor but “rational” market participants as well. In a complex investment landscape full of investment fads and products catered to what people want, instead of what they need, Ariadne Wealth Management stays grounded through academic research and the Scientific Method.
We first define a set of rational expectations, we then set out a hypothesis, we research, test it, and analyze the results. Sometimes the results are as straightforward as confirming the age old maxim "without risk there’s no reward." Other times it’s more complicated, like explaining why the data for momentum is so strong due to flaws in human decision making that make market participants more prone to herding. Investing is not easy and we take comfort that we and our partners have a deep relationship with data and discovery.