In the early months of the pandemic, markets struggled to understand how COVID-19 would affect the economy, and volatility went through the roof. Read Dimensional Funds Director and Consultant Kenneth French, PhD's article, "Equilibrium Markets in the Time of COVID" HERE. LEARN MORE Righting the Ship: One Year Later False Negatives and False Positives Do Downturns Lead to Down Years? … [Read more...] about Equilibrium Markets in the Time of COVID
‘Everything Screams Inflation.’ How to Interpret the Headlines.
KEY TAKEAWAYS After last year's economic shocks, we shouldn't be surprised to see prices rebounding.But the potential for inflation is one among many factors investors take into account when agreeing on a price at which to trade.A look at headlines from the past 50 years shows the difficulty of timing markets around inflation expectations. Investors may be better served sticking to a long-term plan. Read Dimensional Funds VP Weston Wellington's article, "'Everything Screams Inflation.' How … [Read more...] about ‘Everything Screams Inflation.’ How to Interpret the Headlines.
Q2 2021 Market Review
Equity markets around the globe posted positive returns in the second quarter. Looking at broad market indices, US and non-US developed markets outperformed emerging markets for the quarter.Value performance was mixed in the US, with small value outperforming small growth but large value underperforming large growth. Value underperformed growth in non-US developed markets and outperformed in emerging markets.Small caps underperformed large caps in the US and non-US developed markets but … [Read more...] about Q2 2021 Market Review
Fixed Income FAQ: Targeting Higher Expected Returns
No one knows the direction of interest rates or credit spreads. But Dimensional uses information contained in bond market prices to position a fixed income portfolio for higher expected returns. "It's our job as portfolio managers at Dimensional to constantly move the portfolio towards higher expected returns." Featuring Dimensional Fund Advisors VPs, Doug Longo, Head of Fixed Income Portfolio Strategists, Joseph Kolerich, Head of Fixed Income, Americas, and Jake … [Read more...] about Fixed Income FAQ: Targeting Higher Expected Returns
Fixed Income FAQ: Advantages Over an Index-Tracking Fund
Indexing offers the benefits of transparency, diversification, and low costs. Dimensional offers these advantages while also positioning strategies for higher expected returns based on global yield curves and credit spreads. "If you think about Dimensional's strategies, they have those same qualities, but they also have the advantage of being able to take information and current market prices into consideration." Featuring Dimensional Fund Advisors VPs, Doug Longo, Head of Fixed … [Read more...] about Fixed Income FAQ: Advantages Over an Index-Tracking Fund
Fixed Income FAQ: On Investing Amid Negative Interest Rates
Negative interest rates may not translate into a negative return experience for investors. A fixed income strategy that considers currency hedging and different yield curves across the globe can position for positive expected returns versus a domestic-only strategy. "We've had positive total returns because when you think about the return of a bond, there's more than just the interest rate." Featuring Dimensional Fund Advisors VPs, Doug Longo, Head of Fixed Income Portfolio … [Read more...] about Fixed Income FAQ: On Investing Amid Negative Interest Rates