While the Dow and other indices are frequently interpreted as indicators of broader market performance, the stocks composing these indices may not be representative of an investor's total portfolio. A quick online search for "Dow rallies 500 points" yields a cascade of news stories with similar titles, as does a similar search for "Dow drops 500 points." These types of headlines may make little sense to some investors, given that a "point" for the Dow and what it means to an individual's … [Read more...] about Getting to the Point of a Point
Déjà Vu All Over Again
Investment fads are nothing new. When selecting strategies for their portfolios, investors are often tempted to seek out the latest and greatest investment opportunities. Over the years, these approaches have sought to capitalize on developments such as the perceived relative strength of particular geographic regions, technological changes in the economy, or the popularity of different natural resources. But long-term investors should be aware that letting short-term trends influence their … [Read more...] about Déjà Vu All Over Again
From Dimensional: Do Mutual Funds Outperform Benchmarks?
Dimensional Fund Advisors'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. … [Read more...] about From Dimensional: Do Mutual Funds Outperform Benchmarks?
Dimensional On: Recent Market Volatility
Jake DeKinder, Head of Advisor Communication at Dimensional Fund Advisors, explains why investors should view recent market declines as part of the nature of investing. … [Read more...] about Dimensional On: Recent Market Volatility
Recent Market Volatility
While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From February 1-5, the US market (as measured by the Russell 3000 Index) fell almost 6%, resulting in many investors wondering what the future holds and if they should make changes to … [Read more...] about Recent Market Volatility
New Year, New Market Highs
Every day stocks have a positive expected return regardless of whether markets are at an all-time high or not. Throughout 2017, the S&P 500 Index recorded 62 new closing highs in 251 days of trading. In the first three weeks of January 2018 alone, the index crossed 10 new record closing highs in 13 days of trading. With stock indices continuing to set new highs, does this mean negative returns for stocks are on the horizon? When addressing this question, it is helpful to keep the following … [Read more...] about New Year, New Market Highs