Investment Strategy


Mark Smith Financial Services Manages Your Investments Differently

Over the years, some investment management practices have shifted from “traditional” thinking to a more dynamic, scientific approach through the groundbreaking research and technologies founded by Dimensional Fund Advisors (DFA). Mark Smith is among a select group of advisors qualified to offer clients direct access to passively managed, index-like funds designed and offered through DFA. Founded in 1981, DFA works with some of the world’s leading financial economists to bring their theories and research into practice.

Using these strategies, Mark Smith Financial Services can offer our clients a better investment experience and provide them with a globally diversified investment portfolio created as part of a plan. Everyone has different investment needs and goals; perhaps you want to prepare for retirement, save for your child’s education, or simply want increase your financial wealth. Investing now, in order to achieve your financial goals, is essential for your future.

Mark Smith Financial Services is a time proven investment company. The firm you choose to represent you should have your best interest in mind; your investments should be efficiently managed and skillfully diversified to address market variables. Moreover, your investment portfolio should be specifically designed with consistent academic research to provide the best return on your investments. Mark Smith Financial Services incorporates all of these proven methods into the process of creating and managing our client’s portfolios.


To learn more about Dimensional Fund Advisors (DFA) click here.


Prediction Investing vs Academic Investing

Prediction investing is largely based on prediction and forecasting which includes choosing stocks expected to perform well in the future based on past performance and historical data. This includes moving in and out of specific investment sectors, or is based on market hype or personal interest. Market timing is another commonly used prediction investment method, forecasting the time to get in and out of a particular sector as well as trying to make the quickest gain on your investment. This can be a poor choice for an investor looking for low risk long term investment growth. All of these methods are trying to predict the way the economy, the stock market, or even an individual stock will perform.

Part of prediction based investing is the emotional side of investing; people act impulsively when either buying or selling, tending not to look at the entire picture of the market. Additionally, investor fall prey to letting the media sway them, and again basing decisions on perceived information or emotional hunches, not based on research driven data.

Academic investing utilizes what has been learned over the past 60 years of academic research into both markets and investing. The “Dimensional” approach looks at the market, not in terms of individual stocks, but it defines the market based on expected returns. Mark Smith Financial Services, with DFA, builds broadly diversified portfolios that emphasize areas which offer the potential for higher expected returns. Academic investing focuses on remaining diversified and capturing the “Dimensional” approach, rather than deliberating on a specific concentration of stocks. Mark Smith Financial Services always focuses on educating our clients, helping them stay disciplined through various market conditions, and encouraging them to be consistent in achieving their financial goals.

The “Dimensional” approach puts it all together to translate compelling academic research into practical investment solutions.

Download “Putting Financial Science to Work” provided by Dimensional Fund Advisors.


Patient Trading Equals Lower Portfolio Management Fees

Mark Smith Financial Service’s client portfolios are efficiently managed to reduce excessive trading based on prediction investing practices. With patient trading we can avoid the adverse price impact that occurs when a manager trades index securities around periodic reconstitution dates. These trading costs can normally be controlled, and avoiding them makes a real difference in investment portfolio returns.

Mark Smith Financial Services along with DFA’s “Dimensional” approach, buys and sells solely based on price and not according to the pressures of time, limited alternatives, or commitment to a forecast or index. Being patient when others are pressured to buy and sell, and being price sensitive when others are paying a premium price, leads to overall decreased portfolio management costs.

Mark Smith Financial Services is ready to help you achieve your financial goals by applying our proven methods, efficiently managing your portfolio, and helping to educate you, so you can make better investment decisions.

Contact us if you have questions or would like to setup a consultation by clicking here. Or call us at 805-494-1588.