1926—2020 (compounded monthly)(1)
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?
5. Is there a better way to build a portfolio?
6. Is international investing for me?
7. Will making frequent changes to my portfolio help me achieve investment success?
8. Can my emotions affect my investment decisions?
9. Should I make changes to my portfolio based on what I’m hearing in the news?
10. So, what should I be doing?
Trying to answer these questions may be intimidating, but know that you’re not alone. Read more in the full article by Dimensional Fund Advisors, “Key Questions for Long-Term Investors” HERE.
FOOTNOTES
(1)In USD. US Small Cap is the CRSP 6-10 Index. US Large Cap is the S&P 500 Index. US Long-Term Government Bonds is the IA SBBI US LT Govt TR USD. US Treasury Bills is the IA SBBI US 30 Day TBill TR USD. US Inflation is measured as changes in the US Consumer Price Index. CRSP data is provided by the Center for Research in Security Prices, University of Chicago. S&P data © 2021 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. US long-term government bonds and Treasury bills data provided by Ibbotson Associates via Morningstar Direct. US Consumer Price Index data is provided by the US Department of Labor Bureau of Labor Statistics. Past performance is no guarantee of future results.