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Annualized US market compound returns with and without Facebook, Amazon, Apple, Netflix, and Alphabet (Google), 2009–2018

November 5, 2019 By Paul Ohanian

How Markets Work and the FAANG Mentality

The stocks commonly referred to by the FAANG moniker—Facebook, Amazon, Apple, Netflix, and Google (now trading as Alphabet)—have posted impressive gains through the years, with all now worth many times their initial-public-offering prices. The notion of FAANG stocks as a powerful group holding sway over the markets has sunk its teeth into some investors. But how much of the market's recent returns are attributable to FAANG stocks? And does their performance point to a change in the … [Read more...] about How Markets Work and the FAANG Mentality

Filed Under: Equity Investing, Investor Education, Market Tagged With: Amazon, Apple, Equity Investing, Expected Returns, Facebook, Google, stock market

August 28, 2019 By Paul Ohanian

Jake DeKinder on Recent Market Volatility

After a period of relative calm in the stock market, investors have experienced increased volatility in recent days. While market volatility can create anxiety for some, reacting emotionally and changing long-term investment strategies in response to short-term declines could prove more harmful than helpful. All expressions of opinion are subject to change without notice in reaction to shifting market conditions. This content is distributed for informational purposes, and it is not to … [Read more...] about Jake DeKinder on Recent Market Volatility

Filed Under: Dimensional Funds, Investor Education, Market, Value of Advice, Volatility Tagged With: Volatility

August 2, 2019 By Paul Ohanian

IPOs: Profiles Are High. What About Returns?

Initial public offerings (IPOs) often attract initial public interest—especially when familiar brands become broadly available to investors for the first time. In recent months, investors have had the opportunity to buy shares of ride-hailing networks Uber and Lyft, workplace productivity services Zoom and Slack, and other high-profile businesses ranging from Pinterest to Beyond Meat. News outlets contribute to the frenzy, building anticipation, tracking the early hours of trading, … [Read more...] about IPOs: Profiles Are High. What About Returns?

Filed Under: Dimensional Funds, Investor Education, IPO, Market, Market Timing Tagged With: Dimensional Funds, Expected Returns, investment noise, Market Noise

July 3, 2019 By Paul Ohanian

Timing Isn’t Everything

Attempting to buy individual stocks or make tactical asset allocation changes at exactly the "right" time presents investors with substantial challenges. Over the course of a summer, it's not unusual for the stock market to be a topic of conversation at barbecues or other social gatherings. A neighbor or relative might ask about which investments are good at the moment. The lure of getting in at the right time or avoiding the next downturn may tempt even disciplined, long-term investors. … [Read more...] about Timing Isn’t Everything

Filed Under: Dimensional Funds, Investor Education, Market, Market Timing, Value of Advice Tagged With: Dimensional Funds, Expected Returns, investing, market timing

Annual Returns 1999-2018

June 3, 2019 By Paul Ohanian

The Randomness of Global Equity Returns

You don't have to be an expert in every region to benefit from the opportunities those regions represent. A well-structured portfolio can help capture returns where and when they occur. Investment opportunities exist all around the globe. Across more than 40 countries, there are over 15,000 publicly traded companies.[1] If you listen to the news, however, some countries may seem like better places to invest than others based on how their economies and stock markets are doing at the … [Read more...] about The Randomness of Global Equity Returns

Filed Under: Dimensional Funds, Emerging Markets, International, Investor Education, Market, Matrix Book, Value of Advice Tagged With: Expected Returns

May 28, 2019 By Paul Ohanian

David Booth on Market Volatility

When people act like the sky is falling, it's helpful to remember that volatility is normal, and there are simple things you can do to pursue a better investment experience. Recently, the market has shown a lot of volatility. This can be unnerving, even when you have a solid plan backed up by an investment philosophy you believe in. Most of the time, it feels great to know that if you're a long-term investor, you can go about your life with the confidence that true conviction … [Read more...] about David Booth on Market Volatility

Filed Under: Dimensional Funds, Market Tagged With: Expected Returns, investment noise, trustedadvice, Volatility

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