Dimensional’s 2018 analysis of US-based mutual funds shows that only a small percentage of funds have outperformed industry benchmarks after costs—and among top-ranked funds based on past results, only a small percentage have repeated their past success.
With school back in session in most of the country, many parents are likely thinking about how best to prepare for their children’s future college expenses.
Now is a good time to sharpen one’s pencil for a few important lessons before heading back into the investing classroom to tackle the issue.
THE CALCULUS OF PLANNING FOR ...Continue Reading →
If there’s one thing you can count on, both in life and investing, its’ uncertainty. That’s why we save and invest to begin with. We save and invest today, hoping our money will grow. We act on our aspirations for a bright financial future, but we never know for sure.
It stands to reason, then, if there were a credible, evidence-based way to ...Continue Reading →
If there’s one trait most of us share, it’s a desire to make the world a better place. No wonder there’s so much interest in sustainable investing. Who wouldn’t want to try to earn decent if not stellar returns, while contributing – or at least causing less harm – to the greater good?
But is this a new and better way to invest for the greater good or just another ...Continue Reading →
On Friday, the Dow closed down almost 600 points (2.34%) on trade war fears. However, the markets are not tanking as we write this piece. In fact, overall market temperatures have been so mild for so long, many newer investors and us seasoned investors have forgotten what volatility feels like and how panic-inducing those times can be.
Experience and evidence alike show us how severely volatile markets test investor resolve, sabotage ...Continue Reading →
Dimensional offers some perspective, in this 1:38 minute video, on capital markets, previous market declines, volatility, and the importance of investor discipline.Share
Right when we began to think markets only move upwards, the pendulum reverses. Unless your personal goals have changed, stay the course according to your personal plan. It never hurts to repeat this steadfast advice during periodic market downturns. We understand that thinking about scary markets isn’t the same as experiencing them. Fear is a completely normal response when something like this happens. Acting on those emotions, though, ...Continue Reading →
Dimensional Fund Advisors
DOWN TO THE WIRE
In 2017, we were again reminded of the importance of following an investment approach based on discipline and diversification vs. prediction and timing. As we gear up for the new year, we can look at several examples during 2017 that provide perspective on what guidance investors ...Continue Reading →
Have you caught cryptocurrency fever, or are you at least wondering what it’s all about? Odds are, you hadn’t even heard the term until recently. Now, it seems as if everybody and their cousin wants in.
Psychologists have assigned a term to the angst you might be feeling in the heat of the moment. It’s called “FoMO“ or Fear of Missing Out. Education is the best first step toward ...Continue Reading →