The year 2020 proved to be one of the most tumultuous in modern history, marked by a number of developments that were historically unprecedented. But the year also demonstrated the resilience of people, institutions, and financial markets. Read Dimensional's full article, "Market Review 2020: Looking Back on an Unprecedented Year," HERE. LEARN MORE SWP's Q4 2020 Market Review Slideshow SWP's Total Year 2020 Market Review Slideshow DISCLOSURES The information in this … [Read more...] about Market Review 2020: Looking Back on an Unprecedented Year
The Right Thing, Not the Easy Thing
It may be easy to find an investment strategy that looks great in hindsight. It's more important to find ways to add value going forward. Read Dimensional's research paper, "The Right Thing, Not the Easy Thing," HERE. LEARN MORE An Exceptional Value PremiumUntangling IntangiblesWhy Worry About Survivorship Bias? DISCLOSURES The information in this document is provided in good faith without any warranty and is intended for the recipient's background information only. It does … [Read more...] about The Right Thing, Not the Easy Thing
Investing in FAANG Stocks: Should You Expect Unexpected Returns?
Over the 10 years from September 2010 to August 2020, a portfolio of the so-called FAANG stocks-Facebook, Amazon, Apple, Netflix, and Google's parent company, Alphabet-held in proportion to their market caps would have delivered an average annual return of 34.25% per year. That means on average, the value of the portfolio doubled about every 2.5 years. Given their great returns over the last 10 years, what is our best guess of how the FAANG stocks will do over the next decade? Read … [Read more...] about Investing in FAANG Stocks: Should You Expect Unexpected Returns?
Kenneth French on Building Confidence as an Investor
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
The Uncertainty Paradox
Doubt is not a pleasant condition, but certainty is an absurd one. —Voltaire "The market hates uncertainty" has been a common enough saying in recent years, but how logical is it? There are many different aspects to uncertainty, some that can be measured and some that cannot. Uncertainty is an unchangeable condition of existence. As individuals, we can feel more or less uncertain, but that is a distinctly human phenomenon. Rather than ebbing and flowing with investor sentiment, … [Read more...] about The Uncertainty Paradox