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 financial … [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
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