Objectivism teaches that logic is how we understand the world — and that truth doesn’t change just because we feel differently. Emotions and instincts might guide how we react, but they aren't reliable ways to learn what’s actually true. Just because one may feel that 2+2 equals 5 does not make it true.
In investing, the difference between what feels right and what actually works can be costly. Emotions don’t care about logic. They push investors (and maybe advisors?) into bad decisions — at the worst possible times. That’s why Investment Objectivism matters. It is the belief that only logic, facts, and hard data — not feelings — should drive investment choices.
iQUANT.pro has built its entire platform around this principle. We use a rules-based, mechanical approach that filters out the noise and focuses on what works. Does it work 100% of the time? Of course not…but over time iQUANT strategies have consistently provided its members benchmark-appropriate Alpha.
How Emotion Hurts Investors: Real-World Evidence
According to DALBAR’s Quantitative Analysis of Investor Behavior, the average equity investor earned just 6.81% annually over a 30-year period ending in 2022 — while the S&P 500 returned over 10%. The gap? It is mostly due to poor timing: buying high in greed, selling low in fear.
In early 2020, when COVID-19 panic hit, markets fell over 30% in weeks. Many investors sold out in fear. But by the end of that year, the market had fully recovered — and tech stocks were soaring. Those who reacted emotionally missed the rebound. Did anyone react emotionally the last few days?
During the meme stock craze in 2021, driven by social media hype, many investors rushed into GameStop and AMC after their prices had already skyrocketed. According to research from JPMorgan and Charles Schwab, a large share of retail investors who bought in at the top saw massive losses as those stocks quickly crashed. Greed and FOMO (fear of missing out) led to decisions that had no connection to company fundamentals — just crowd emotion.
Then there's the trap of comfort — when investors hold underperforming assets simply because they are familiar. Behavioral finance calls this the "status quo bias," and it is one reason portfolios often stay stuck in neutral. A 2022 Vanguard study found that investors who avoided rebalancing their portfolios due to inertia underperformed by nearly 2% annually compared to those who made data-driven adjustments.
These aren’t just isolated mistakes — they are patterns. Emotional investing doesn’t just feel risky. It is risky.
Why Investment Objectivism Works
Unemotional: iQUANT.pro strategies rely on logic and math — not gut feelings. In 2022, when fear drove others to sell, many of our models (even stock models) were positive, capturing growth where others saw chaos.
Backed by Data: Every strategy at iQUANT.pro is tested against decades of historical market performance.
Built to Outperform: Between 2010 and 2020, rules-based strategies that focused on momentum, earnings revisions, and valuation consistently outpaced passive index returns. Our process at iQUANT.pro is designed to identify those exact factors and disciplines.
Final Word
At iQUANT.pro, we believe in staying grounded. We believe in facts, discipline, and data — not hunches or headlines. Because in this industry, it doesn’t matter how much emotion you bring to the table. 2+2 will always equal 4.
And that is exactly how we build our models.