Scottsdale Wealth Planning

Expected Returns

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Ins and Outs of Emerging Markets Investing: Market Behavior and Evolution

Emerging markets are an important part of a well-diversified global equity portfolio. However, recent history reminds us that they can be volatile and can perform differently than developed markets. In THIS ARTICLE, Dimensional provides a longer historical perspective on the performance of emerging markets and the countries that constitute them.  DISCLOSURES The information in this document is provided in good faith without any warranty and is intended for the recipient's background … [Read more...] about Ins and Outs of Emerging Markets Investing: Market Behavior and Evolution

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Can Small Cap Stocks Weather the Storm?

With recession concerns intensifying in the wake of the COVID-19 pandemic, investors may be wondering whether small cap stocks are poised to struggle. Are small companies more vulnerable now than they have been during other periods of economic distress? And what are the implications for the size premium? Read Dimensional Fund Advisor's article, "Can Small Cap Stocks Weather the Storm," HERE. The information in this document is provided in good faith without any warranty and is … [Read more...] about Can Small Cap Stocks Weather the Storm?

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Long-Term Investors, Don’t Let a Recession Faze You

In the past century, there have been 15 recessions in the US. In 11 of them, stock returns were positive two years after the recession began. Read Dimensional Fund Advisor's article, "Long-Term Investors, Don't Let a Recession Faze You," HERE. … [Read more...] about Long-Term Investors, Don’t Let a Recession Faze You

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What Happens When You Fail at Market Timing

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

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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