Welcome to Evidence Based Investing!

Intention

We experienced that the vast majority of publicly available financial market research either lacks quality or conflicts with other interests of the publisher. Our goal is to provide high quality analysis of liquid markets worldwide to the broad public.

Approach

We believe that most market participants are irrational. As a result asset valuations tend to diverge, sometimes extremely and even form bubbles, from their long run mean. Moreover valuations tend to be mean-reverting in the long run. Oscillation around long run mean valuations develop in trends. We aim to recognize trends with tools from technical analysis despite that no scientific support for technical analysis itself exists to our knowledge. Elliott wave analysis is implemented across markets in order to identify and predict current trends.

About

Our passion lies in economics and trading. We have been trained at reputable universities and worked as proprietary traders as well as portfolio managers throughout the past couple of decades. We started exploring the field of behavioral economics due to self interest in the late 90’s. Our curiosity helped us to understand financial markets and asset price valuations with our insights from behavioral science.

Theory