Prof. Kenneth French explains how he uses anticipated regret when deciding how to split his portfolio between stocks and bonds, and he shares two essential beliefs about the market that affect his allocation. … [Read more...] about Kenneth French on Building Confidence as an Investor
Kenneth French on How to Think About Investment Risk
Prof. Kenneth French explains that for most investors, the best definition of risk is uncertainty about lifetime consumption. He also offers helpful examples from investors' everyday lives to simplify complex ideas. … [Read more...] about Kenneth French on How to Think About Investment Risk
Kenneth French on the Difficulty of Timing the Market
Most people who try to time the market are just fooling themselves, says Prof. Kenneth French, explaining what it really takes to beat the market and why doing so is harder than many investors think. … [Read more...] about Kenneth French on the Difficulty of Timing the Market
Gerard O’Reilly on Why Value
Dimensional Co-CEO and Chief Investment Officer Gerard O'Reilly speaks on the performance of value stocks relative to growth stocks, addressing the theory and data supporting a value premium in these webcast highlights. If you stop believing in value, you stop believing in lots of what makes the world go 'round.- Gerard O'Reilly, Dimensional Fund Advisors Why Value? When Value Strikes Back … [Read more...] about Gerard O’Reilly on Why Value
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?
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