Investors understand that high quality companies are more likely to do better over the long-term compared to unhealthy ones. That’s why Linden Thomas & Company set out to build a better index with a focus on Earnings Quality, unlike the passive, pooled index funds that hold stocks based only on size. Below, you’ll see the results of our Earnings Focused Growth index compared to the market since launch. However, the timing can impact investors’ perception of results by luring investors to ignore the long-term trend, choosing instead to focus on short-term pullbacks. Below is a chart of a 60/40 portfolio since 2006. Keep in mind that this includes the Great Financial Crisis, COVID, and the aggressive interest rate hiking by the Fed in 2022. Source: Zephyr StyleAdvisor. Portfolio constructed using 30% S&P 500 index, 10% EAFE index, 10% Russell Midcap index, 10% Russell Small-Cap index, and 40% Bloomberg Barclays U.S. Aggregate Bond index. The above chart illustrates that the long-term trend is clear, and that even a moderately conservative portfolio like this has historically captured substantial upside. What Is Timing Bias? Timing bias is a