How can investors make sense of the apparent disconnect between stock market performance and economic indicators? Read Dimensional Fund Advisor's article, "Under the Macroscope: When Stocks and the Economy Diverge," HERE. 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 not constitute investment advice, recommendation, or an offer of any services or products for sale and is … [Read more...] about Under the Macroscope: When Stocks and the Economy Diverge
With recession concerns intensifying in the wake of the COVID-19 pandemic, investors may be wondering whether small cap stocks are poised to struggle. Are small companies more vulnerable now than they have been during other periods of economic distress? And what are the implications for the size premium? Read Dimensional Fund Advisor's article, "Can Small Cap Stocks Weather the Storm," HERE. Rolling 12-Month average monthly bad delisting rate for US small cap stocks, … [Read more...] about Can Small Cap Stocks Weather the Storm?
In the past century, there have been 15 recessions in the US. In 11 of them, stock returns were positive two years after the recession began. Read Dimensional Fund Advisor's article, "Long-Term Investors, Don't Let a Recession Faze You," HERE. … [Read more...] about Long-Term Investors, Don’t Let a Recession Faze You
Renowned labor economist Edward P. Lazear, an independent director on the boards of Dimensional's US Mutual funds, discusses what policymakers are monitoring with COVID-19, how monetary authorities are responding, and what the global recovery may look like. Prof. Lazear teaches at Stanford University's Graduate School of Business. As chairman of the Council of Economic Advisers under President George W. Bush from 2006 to 2009, he helped guide the US policy response to the … [Read more...] about Leading Labor Economist Professor Ed Lazear on COVID-19
History shows there's no compelling or dependable way to forecast stock and bond movements. The year 2019 has been a case in point. Read Dimensional Fund Advisor's article, "Hindsight Is 20/20. Foresight Isn't.," HERE. … [Read more...] about Hindsight Is 20/20. Foresight Isn’t.
From Dimensional Fund Advisors The impact of missing just a few of the market's best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. A hypothetical $1,000 turns into $138,908 from 1970 through the end of August 2019. Miss the S&P 500's five best days and that's $90,171. Miss the 25 best days and the return dwindles to $32,763. There's no proven way to time the market—targeting the best days or moving to the … [Read more...] about What Happens When You Fail at Market Timing