Market Cycle Indicator
Market Behavior Theory - the new Yin-Yang Index and better simulation.
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Risk Tolerance Assessment
Market distorts investor's true risk tolerance. The new 4T-10C system.
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Risk aversion, maximum draw-down, and the new Calmar-Yang Ratio.
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From market indexes to the new Theme-Based Benchmarks.
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- Welcome to Institute for Systematic Investing Research (ISIR), a non-profit site dedicated to investing behavior research and education.
- Since 1996, we have developed new measurement tools for investment planning process. Our research has been validated by thousands of actual investment cases.
- Our goal is to educate investors through scientific research to differentiate the value of investment products and services from financial industry's conflicts of interest.
Most financial products or investment strategies today provide higher profit to financial firms and larger payments to their advisers but are not necessarily the best choice for the investors. Investors have been experiencing serious investment losses due to such conflicts of interest. Most of time these conflicts of interest are hidden because of "trusted" adviser/investor relationship. Such "trust" is often invisibly being abused without investors' knowledge. Most investors thought their advisers doing a "good" job merely based on positive returns, without realizing that the adviser actually did not add value at all when compared to other better and lower cost alternatives. Many times even institutional investors were fooled by "smart" managers who charged high fees for doing a "great" job. The fundamentally flawed strategy were often not discovered until big losses resulted.
Government has proposed the new regulation to protect investors; but financial industry advocates think the new rules will hurt investors; and investors are all very confused.
"The root cause of the conflict of interest problem is that the financial industry today is still lacking a set of scientific valuation standards for investment products and services. The biggest challenge facing investors today is how to evaluate the value of one adviser as compared to other industry peers on a common basis."
- Charlie Q. Yang (2008)
With the support of thousands of investors and advisers sharing their real-life experiences, we have been developing scientific investment measuring standards which will improve the quality of investment products and services for investors.
- Any investors who believe that the capital market prices are mainly driven by human behaviors. our research is for you.
- If you see investing is more of an art than a science, that is the past. We are making investing activities measurable and more of a science.
- If your advisers claim that they are the best but you feel that they may have only delivered sub-par returns with unwarranted risks, we will equip you with simple tools to evaluate based on a set of common standards.
- Our research has been focused on setting the standards for measuring Market, Risk, Return, and Benchmark which forms four most important steps of any investing process.
Our research covers the following four sets of simple tools for measuring investing activities:
- Measuring capital market cycle - Capital Market Behavior Analysis to help understand the market and its direction;
- Measuring investor's risk level - Foundation of Risk Assessment from conservative to aggressive;
- Measuring portfolio performance - Standard of Portfolio Performance which investors can understand;
- Measuring portfolio improvement - Theme-Based Benchmarks for investors to evaluate portfolio managers.
LEARN MORE story and background of ISIR research ...
Research and Education Resources
- White House - The Effects of Conflicted Investment Advice on Retirement Savings, 2015
- Department of Labor on Conflicts of Interest in Retirement Advice - Saving Middle-Class Families Billions of Dollars Every Year, 2015
- SIFMA - The History of the Fiduciary Standard Debate, 2015
- SIFMA - DOL Fiduciary: An Overview, 2015
- ICI's Statement on THE DEPARTMENT OF LABOR’S PROPOSED FIDUCIARY RULE, 2015
- Research sources for the Courage to Act by Ben S. Bernanke, 2015
- Report on Conflicts of Interest by the Financial Industry Regulatory Authority (FINRA), 2013
- From Efficient Markets Theory to Behavioral Finance by Robert J. Shiller, 2003