Entropy Investment Advisors, Inc., (“Entropy”) was created to bring investors alternatives to a sales oriented environment where they are told that it is always a good time to buy, that asset values always go up and that everything is going to be OK.
Entropy is a fiduciary that represents the client’s interests and has the legal, economic and intellectual freedom to utilize our real history and not pitch clients using manipulative concepts of “historic returns” of various investment classes — we identify and question basic assumptions.
Entropy is here to provide an analytical framework to what is going on, help investors navigate poorly understood risks, focus on avoiding large losses, hedge against foreseeable risks and provide an alternative to the conventional wisdom —- which by some odd coincidence seems to support the interests of the sales oriented firms.
Entropy is somewhat unique in the observation that the productive aspects of the US economy have been deteriorating over the past decade – or longer – (structural decline) and that this is connected to poor investment results. As mainstream, passive “long-only” investing relies on underlying real economic growth in order to function — along with a dollar that reasonably retains purchasing power — investors are starting to experience negative compounding.
Simply put, most commonly accepted ideas about investing work best during a protracted boom or “good-times” — only to unwind thereafter. Proponents of the “buy for the long run” school will never admit that they are wrong — because the long run never comes, and is always just over the horizon – or they will refer to results from many lifetimes of investing.
Now in 2011 we are on the wrong side of a long list of unsustainable trends that have kept our society and its investor class afloat for a long time.
Many other investment and financial professionals have little choice but to believe the official hype about economic “recovery”, growth and low inflation — because they want you to buy financial products and their businesses would suffer if they were to accept — and accurately relate to their clients – anything like our analysis of the financial condition of our society, its serial asset bubbles and the investment implications thereof.