Investment philosophy
Efficient Market Fanaticism?
Are you dizzy from the ups and downs of the market, or is your investment plan steadily moving you closer to the life you want?
Two kinds of investors
Quick gains, or quiet confidence?
Some people get caught up in the race for quick gains. Others quietly and confidently move toward their goals.
The second group understands where their returns really come from — they’ve learned how markets actually work, and they make informed investment decisions using evidence, not hope.
They’re not swayed by daily noise or the latest headlines. They’re not tempted into emotional decisions that could hurt them. Their portfolio isn’t trying to outguess the market — it’s trying to capture the return the market is already giving anyone disciplined enough to stay invested.
Where the term comes from
“Markets process price information effectively all on their own.”
Coined by David Booth, co-founder of Dimensional Fund Advisors, the phrase Efficient Market Fanatic captures a belief in the power of markets to set prices on their own. That means we don’t have to gamble on which stocks to buy, when to buy them, and how much to pay. In the documentary Tune Out the Noise, Booth and other financial pioneers discuss how embracing this market efficiency leads to better investment outcomes.
Three principles
How this philosophy becomes a portfolio.
Trust in market efficiency
The stock market reflects the collective insights of millions of investors. Instead of trying to outguess the market, we accept that prices already incorporate available information — which removes the temptation to time the market or chase trends.
Evidence-based investing
Just as meteorologists use data to forecast weather, we rely on decades of financial research to inform investment strategy — focusing on long-term trends and statistical probabilities, not short-term speculation.
Diversification across markets
Spreading investments across asset classes, industries, and geographies manages risk. By not putting all your eggs in one basket, you increase the likelihood of steady returns over time.
Why this matters to you
What the philosophy gives you in practice.
Peace of mind
Trusting the market to price assets fairly removes the daily anxiety of constant monitoring — and the temptation to react to every headline.
Reduced costs
Evidence-based strategies carry lower fees than active management — and lower fees mean more of your return stays in your pocket, year after year.
Consistent performance
Diversified portfolios aligned with market efficiency tend to perform reliably over the long term — even when individual sectors swing.
Our commitment to you
Build a resilient portfolio grounded in how markets actually work.
At RMG Advisory Services, we embrace the principles in Tune Out the Noise. Our goal is to help you build a resilient investment portfolio grounded in the realities of how markets work — not the noise about where they might go next.
Apply the philosophy to your situation.
Ready to put this philosophy to work?
Book a 15-minute intro call. We’ll talk through what an efficient-markets approach looks like for your portfolio, your taxes, and your plan.
Independent fiduciary advice. No pitch.