KEY TAKEAWAYS Financial journalists periodically stoke investors' record-high anxiety by suggesting the laws of physics apply to financial markets—that what goes up must come down.But shares are not heavy objects kept aloft through strenuous effort. They are perpetual claim tickets on companies' earnings and dividends.If stocks have a positive expected return, reaching record highs with some frequency is exactly the outcome we would expect. Read the full article by Dimensional VP … [Read more...] about All-Time-High Anxiety
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here's some good news: Inflation isn't necessarily bad news for stocks. Read Dimensional Funds's recent article, "Will Inflation Hurt Stock Returns? Not Necessarily." HERE. History shows that stocks tend to outpace inflation over time. DISCLOSURES The information in this document is provided in good faith without any warranty and is intended for the recipient's background information only. It does … [Read more...] about Will Inflation Hurt Stock Returns? Not Necessarily.
KEY TAKEAWAYS Components of ESG in an investment strategy, how they're measured, and the method of incorporation can lead to a wide range of investment outcomes.ESG strategies exhibit a broad spectrum of characteristics, which may drive expected returns that differ from the market.Greenhouse gas emissions exposure has varied substantially across ESG strategies, highlighting the importance of looking beyond ESG labels to determine whether an ESG investment is consistent with one's … [Read more...] about Beyond the Label, ESG Funds May Miss Their Mark