85% of the time the advice after costs under underperforms the market. The problem is there are few good investments. Bonds make up half the market and they underperform the market by 7 percentage points per year. Of all equities only about 30% outperform the market. The result is everyone wants to own the best 15% of the market.

Why are there not more good options? Financial firms introduce new products every year with no track record and no surprise poor future performance. The financial services industry has a problem in that their investing criteria prevent performance that is better than the market. They need truly new products that don’t use the old rules.

Here are my thoughts for better performance. Use cap weighted ETFs more. Embrace volatility which is the true source of great outperformance. Use diversification only if that adds investments that outperform the market. Encourage investors to get rid of their worst performing 10% every year. Provide investors with extensive relative performance information. Encourage investors to adopt buy and hold strategies.

Investors will gladly pay for great advice. Financial advisors should consider the 8 versions and 6 variations of the Stars buy and hold model as a source of new ideas.