One of the biggest challenges people often face in embracing evidence-based investing is figuring out what it means to them, and putting it into words to remind themselves or to explain to others. Not to worry – we’ve got that covered here at Hill Investment Group. Recently, we produced a nifty advertisement, as well as an infographic/poster (in collaboration with Wendy J. Cook Communications and Mineral Interactive), to tell it to the world. I hope you like the results! (Click on each image to enlarge it.)

Since many of the market’s long-term rewards come from the risks you’re willing to take, making serious money usually hurts — at least when it appears to be out of favor with the “consensus.” Morgan Housel’s recent blog post, “Every Great Investment Hurts,” offers a fresh perspective on the source of that pain.

To trade profitably in highly competitive markets, you not only must make the right calls on future pricing, you’re best off making them when most other investors think you’re wrong. That’s what this simple diagram from Housel’s post suggests.

How do you end up in that profitable sweet spot? You can try guessing correctly almost all the time (super hard). Or you can embrace evidence-based investing, which should guide you toward being correct more often than not … if you stick with your plans. That can still be hard, but at least the odds are stacked in your favor.

In “Presentation With a View,” you may have spotted this enigmatic image in the photo. What is it?

You may recognize it as a stylized rendition of an “Illustration of the Month” we shared last February. Both warn us against trying to successfully pick “winners” or avoid “losers” by chasing recent performance. Based on the data from the more detailed version, you’ve got less than 50/50 odds of picking a stock fund that is even expected to survive the 15-year period ending 2015. Picking one that not only survived but also outperformed its standard benchmark dwindles to a mere 17 percent.

Why play a game so heavily stacked against you when evidence-based investing is available instead?