Trivia time: how many stocks make up the Wilshire 5000 Total Market Index (a widely used benchmark for the US equity market)? While the logical guess might be 5,000, as of December 31, 2016, the index actually contained around 3,600 names. In fact, the last time this index contained 5,000 or more companies was at the end of 2005.[1] This mirrors the overall trend in the US stock market. In the past two decades there has been a decline in the number of US-listed, publicly traded companies. … [Read more...] about Going Global: A Look at Public Company Listings
Investment Shock Absorbers
Ever ridden in a car with worn-out shock absorbers? Every bump is jarring, every corner stomach-churning, and every red light an excuse to assume the brace position. Owning an undiversified portfolio can trigger similar reactions. Explore how spreading your portfolio across different securities, sectors, and countries can smooth the bumpy and unpredictable ride that lies between you and your long-term investment goals, with Dimensional Funds VP Jim Parker in the attached article "Investment … [Read more...] about Investment Shock Absorbers
A Look Back at 2016
Every year brings its share of surprises. But how many of us could have imagined that 2016 would see the Chicago Cubs win the World Series, Bob Dylan receive the Nobel Prize in Literature, Donald Trump elected president, and the Dow Jones Industrial Average close out the year a whisker away from 20,000? The answer is very few—a lesson that investors would be wise to remember. Click HERE to read DFA's latest brief, "A Look Back at 2016," and learn how truly difficult it is … [Read more...] about A Look Back at 2016
2016 Market Review
In 2016, the US market reached new highs and stocks in a majority of developed and emerging market countries delivered positive returns. The year began with anxiety over China's stock market and economy, falling oil prices, a potential US recession, and negative interest rates in Japan. US equity markets were in steep decline and had the worst start of any year on record. The markets began improving in mid-February through midyear. Investors also faced uncertainty from the Brexit vote in June … [Read more...] about 2016 Market Review
Q4 2016 Market Review Posted
You've lived through 90 days of alarming financial headlines and wild speculation of what's to come. Enjoy a few minutes of thoughtful reflection with our Q4 2016 Market Review. Included is the 2016 Annual Market Review. This report features world capital market performance and a timeline of events for the past quarter and total year 2016. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. Our Market Reviews are … [Read more...] about Q4 2016 Market Review Posted
Out of the Matrix: Part 2
It's a great big world out there. At Scottsdale Wealth Planning, we build well diversified, global portfolios as the cornerstone of our long-term wealth plans. And each spring when the latest Dimensional Funds Matrix Book is released, our commitment to this approach is further confirmed. In today's video, DFA VP Joel Hefner uses Matrix Book data to illustrate the importance of global diversification and discipline by comparing the historical performance of US and emerging markets stocks over … [Read more...] about Out of the Matrix: Part 2