By: Marlena Lee, PhD, Global Head of Investment Solutions, Dimensional Fund Advisors You only live once! Social media investors have banded together on unconventional platforms to drive up the prices of a handful of “meme stocks,” seemingly without traditional evaluation of investing risks and rewards. They made headlines with their “short squeeze” of GameStop (GME), … Continue reading YOLO, Meme, and EMH: What’s Your Investment Style?
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
Please see our Covid-19 (Coronavirus) update here.
The US stock market has delivered an average annual return of around 10% since 1926. But how often have the stock market’s annual returns actually aligned with its long-term average? Read More
Research shows that, like stock prices, changes in interest rates and bond prices are largely unpredictable. Read More
Dave Butler from DFA offers a sports example to help investors apply discipline in a stressful market. Read More.
The market events of January 2016 provide an opportunity to examine several questions important to investors and revisit some fundamental principles of investing in capital markets. Read More.
Should Investors Sell After a “Correction”? Financial professionals generally describe any decline of 10% or more from a previous peak as a “correction,” although it is unclear what investors should do with this information. Should they seek to protect themselves from further declines by selling, or should they consider it an opportunity to purchase stocks … Continue reading
MasterChef of Investing. In the popular TV program MasterChef, contestants face a series of cooking challenges. From low quality ingredients to inadequate preparation and poor implementation, so many things can, and do, go wrong. It’s a bit like investing. Read More.
CAPE Fear: Valuation Ratios and Market Timing As broad market indices such as the S&P 500 have set new record highs in recent weeks, many investors have become apprehensive. They fear another major decline is likely to occur and are eager to find strategies that promise to avoid the pain of an extended downturn while preserving … Continue reading