Bond yields change as markets digest news and events around the world, which also causes yield curves to move and change shape over time. What is a yield curve, and why are stock investors interested in its shape? A yield curve gives a snapshot of how yields vary across bonds of similar credit quality, but different maturities, at a specific point in time. For example, the US Treasury yield curve indicates the yields of US Treasury bonds across a range of maturities. Bond yields change as … [Read more...] about The Flat-Out Truth
While surprises can and do happen in elections, the surprises don't always lead to clear-cut outcomes for investors. It's almost Election Day in the US once again. For those who need a brief civics refresher, every two years the full US House of Representatives and one-third of the Senate are up for reelection. While the outcomes of the elections are uncertain, one thing we can count on is that plenty of opinions and prognostications will be floated in the days to come. In financial circles, … [Read more...] about Midterm Elections: What Do They Mean for Markets?
"Sellers were out in force on the market today after negative news on the economy." It's a common line in TV finance reports. But have you ever wondered who is buying if so many people are selling? Click HERE to read "A Question of Equilibrium", by Dimensional Fund Advisors Vice President Jim Parker. … [Read more...] about A Question of Equilibrium
As an investor, your happiness depends on having realistic expectations about returns and viewing market events in proper context. These two factors can drive your sense of financial well-being and influence your financial outcome. Click HERE to read "The Happiness Equation", by Dimensional Fund Advisors Vice President Brad Steiman. … [Read more...] about The Happiness Equation
The path to success in many areas of life is paved with continual hard work, intense activity, and a day-to-day focus on results. However, for many investors who adopt this approach to managing their wealth, that can be turned upside down. Click HERE to read "The Tao of Wealth Management", by Dimensional Fund Advisors Vice President Jim Parker. … [Read more...] about The Tao of Wealth Management
A number of indexes incorporate changes in market prices at infrequent intervals during the year. This decision can have an impact on the expected return of an index. Click HERE to read "What You Pay, What You Get: Connecting Price and Expected Returns", by Dimensional Fund Advisors Vice President Jake DeKinder. … [Read more...] about What You Pay, What You Get: Connecting Price and Expected Returns