In the past century, there have been 15 recessions in the US. In 11 of those instances, stock returns were positive two years after the recession began. • Investors may be tempted to abandon equities and go to cash when there is heightened risk of an economic downturn. • But research has shown that stock … Continue reading Don’t Let a Recession Faze You
Our 2017 Market & Economic overview is available here.
Research shows that, like stock prices, changes in interest rates and bond prices are largely unpredictable. Read More
Investors can benefit from consistent exposure in their portfolios to both US and non-US equities. Read More [article from March 2016]
Many investors look to gross domestic product (GDP) as an indicator of future equity returns. Read More.
Dave Butler from DFA offers a sports example to help investors apply discipline in a stressful market. Read More.
Connecting the Dots Human beings love stories. But this innate tendency can lead us to imagine connections between events where none really exist. For financial journalists, this is a virtual job requirement. For investors, it can be a disaster. Read More.
What's New About a "New Normal"? The concept of a new normal is anything but new. In fact, throughout modern history, periods of economic upheaval and market volatility have led people to assume that life had somehow changed and that new economic rules or an expanding government would limit growth. What they could not see … Continue reading
VIDEO: Should Investors Fear the New Normal? Ken French, Professor of Finance at the Tuck School of Business at Dartmouth College, explains why lower economic growth may not hinder future returns.