KEY TAKEAWAYS Stock markets continued to climb higher in 2021, with the S&P 500 hitting a series of all-time closing highs and ending the year near a record. While COVID-19 continued to dominate headlines, concerns also focused on inflation and its potential impact. Investors saw volatility in areas ranging from cryptocurrencies to so-called meme stocks, highlighting the importance of long-term planning and flexibility in a fast-moving market. Read Dimensional's full article, … [Read more...] about Market Review 2021: A Recovery Amid Challenges
Why a Stock Peak Isn’t a Cliff
Many investors may think a market high is a signal stocks are overvalued or have reached a ceiling. However, they may be surprised by what the data show. Read more in Dimensional's recent article, Why a Stock Peak Isn't a Cliff." ADDITIONAL MATERIALS ONE-PAGER Why a Stock Peak Isn't a Cliff Many investors may think a market high is a signal stocks are overvalued or have reached a ceiling. However, they may be surprised by what the data show. DISCLOSURES The information … [Read more...] about Why a Stock Peak Isn’t a Cliff
Why I’ll Always Be Optimistic About the Market
Since the beginning of the COVID pandemic, David Booth's beliefs in markets have been tested more than ever. And they've held up. The Executive Chairman and Founder of Dimensional Fund Advisors shares his perspective in, "Why I'll Always Be Optimistic About the Market." Rather than having to guess what will happen to whom and when, I choose a different path. I invest in the market.David Booth, Executive Chairman and Founder of Dimensional Fund Advisors Read the full article from … [Read more...] about Why I’ll Always Be Optimistic About the Market
Key Questions for Long-Term Investors
Whether you've been investing for decades or are just getting started, at some point on your investment journey you'll likely ask yourself some of these questions: 1. What sort of competition do I face as an investor? 2. What are my chances of picking an investment fund that survives and outperforms? 3. If I choose a fund because of strong past performance, does that mean it will do well in the future? 4. Do I have to outsmart the market to be a successful investor? … [Read more...] about Key Questions for Long-Term Investors
Myth-Busting with Momentum: How to Pursue the Premium
Nearly 30 years after its formal discovery,1 the appeal of stock price momentum2 remains in the eye of the beholder. Read the latest research paper, "Myth-Busting with Momentum: How to Pursue the Premium" by Dimensional Head of Investment Strategist and Vice President Wes Crill, PhD, HERE. FOOTNOTES Narasimhan Jegadeesh and Sheridan Titman, "Returns to Buying Winners and Selling Losers: Implications for Stock Market Efficiency," Journal of Finance 48, no. 1 (1993).Stock price … [Read more...] about Myth-Busting with Momentum: How to Pursue the Premium
10 Obstacles to Investing—and How to Overcome Them
Even though the investment principles we run on are simple, they aren't always easy to understand and accept. Many people struggle with some of the basic concepts behind long-term, highly diversified investing—it's a matter of human nature."David Booth, Executive Chairman and Founder of Dimensional Fund Advisors Read the full article by Dimensional Executive Chairman and Founder David Booth, "10 Obstacles to Investing—and How to Overcome Them" HERE. ARTICLE … [Read more...] about 10 Obstacles to Investing—and How to Overcome Them