Dimensional Fund Advisors's 2018 analysis of US-based mutual funds shows that only a small percentage of funds have outperformed industry benchmarks after costs—and among top-ranked funds based on past results, only a small percentage have repeated their past success. … [Read more...] about From Dimensional: Do Mutual Funds Outperform Benchmarks?
When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested. For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as impactful to your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the "lost decade" can help illustrate several periods that may have led market participants to … [Read more...] about Tuning Out the Noise
Jake DeKinder, Head of Advisor Communication at Dimensional Fund Advisors, explains why investors should view recent market declines as part of the nature of investing. … [Read more...] about Dimensional On: Recent Market Volatility
While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing. After a period of relative calm in the markets, in recent days the increase in volatility in the stock market has resulted in renewed anxiety for many investors. From February 1-5, the US market (as measured by the Russell 3000 Index) fell almost 6%, resulting in many investors wondering what the future holds and if they should make changes to … [Read more...] about Recent Market Volatility
You've lived through 90 days of financial headlines and speculation of what's to come. Enjoy a few minutes of thoughtful reflection with our Q2 2017 Market Review. This report features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. Our Market Review is updated quarterly and always available on our Home Page. … [Read more...] about Q2 2017 Market Review Posted
There has been much discussion in the news recently about new nominal highs in stock indices like the Dow Jones Industrial Average and the S&P 500. When markets hit new highs, is that an indication that it's time for investors to cash out? History tells us that a market index being at an all-time high generally does not provide actionable information for investors. For evidence, we can look at the S&P 500 Index for the better part of the last century. Exhibit 1 shows that from 1926 … [Read more...] about New Market Highs and Positive Expected Returns