Articles (203)

2,483,257 views

Featured Article


murray@ifa.com

Institutional-Grade Active Managers Don't Do Any Better: SPIVA

5,763
by Murray Coleman
Updated: Monday, October 3, 2022

S&P research shows that higher-tiered share classes don't provide a significant advantage for active ...Read More

Article Library

  • jackson

    How to Invest Better—and Live Better

    249
    by David Booth — Friday, September 30, 2022

    It can be challenging to start a conversation about investing. That’s why I encourage having a conversation before the investing conversation—what I like to think of as a “preamble.” Connecting life principles to investment principles is a powerful way to ...Read More

  • Dimensional Fund Advisors

    What History Tells Us about the Market and Control of US Congress

    376
    by Dimensional Fund Advisors — Wednesday, September 7, 2022

    Nearly a century of US stock market returns suggests that making investment decisions based on control of the chambers of Congress is unlikely to lead to better investment outcomes. From 1926 to 2022, stocks trended higher regardless of whether Democrats or Republicans ...Read More

  • Weston Wellington

    FAANGs Gone Value

    456
    by Dimensional Fund Advisors — Wednesday, August 31, 2022

    One of the more vocal arguments against value investing stems from a belief that we’re in a “new normal” environment where innovative or high-tech companies have a leg up on “old guard” industries, such as energy or financials. FAANG stocks have ...Read More

  • Mark Hebner

    Cash Withdrawal Considerations

    21,847
    by Murray Coleman — Updated: Wednesday, August 24, 2022

    IFA is often in the position of accommodating regular cash withdrawal by its clients. The question is how to best generate cash for ...Read More

  • Weston Wellington

    Ingenuity and the Investor

    783
    by Weston Wellington — Monday, August 15, 2022

    A recent news item reported that Frederick Smith intended to step down as Chairman and Chief Executive Officer of FedEx Corp., the largest air freight firm in the world. As a Yale undergraduate in 1965, Smith wrote a term paper for his economics course outlining an overnight air ...Read More

  • Dimensional Fund Advisors

    Are We Headed for a Recession?

    1,027
    by Dimensional Fund Advisors — Tuesday, July 5, 2022

    Just two years removed from the last US recession, negative stock returns and aggressive US Federal Reserve interest rate hikes have many investors concerned we are headed for another big “R”—if we’re not already there. But recessions are always ...Read More

  • Dimensional Fund Advisors

    So What's Your Plan for the Bear Market?

    931
    by David Booth — Wednesday, June 29, 2022

    A lot of people are stressed out about a lot of things right now. Markets are down. Prices are up for many of the things you need to buy. Interest rates are rising and make it a confusing time to consider buying or selling a house, or making other ...Read More

  • IFA Contributors

    Where are the Customers' Yachts? A Good Hard Look at Wall Street

    56,404
    by Mark Hebner — Updated: Monday, June 27, 2022

    Once in the dear dead days beyond recall, an out-of-town visitor was being shown the wonders of the New York financial district. When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor. He said, “Look, those are the ...Read More

  • jackson

    Is a Yield Curve Inversion Bad for Stock Returns?

    894
    by Dimensional Fund Advisors — Thursday, June 16, 2022

    Many investors see yield curve inversions—when short-term bond yields exceed long-term yields—as foreboding. Do they signal a stock market downturn? Data from the US and other major economies show yield curve inversions have not historically predicted equity market ...Read More

  • Dimensional Fund Advisors

    Is It Time to Sell Stocks?

    1,002
    by Dimensional Fund Advisors — Wednesday, June 15, 2022

    KEY TAKEAWAYS    Soaring inflation and record market highs may leave investors wondering whether it’s time to adjust their portfolios.    Researchers have examined a wide range of timing strategies based on earnings, dividends, interest rates, ...Read More

  • Dimensional Fund Advisors

    Surprisingly Benign: How Stocks Respond to Hikes in Fed Funds Rate

    638
    by Dimensional Fund Advisors — Wednesday, June 15, 2022

    On May 4, the US Federal Reserve increased the target federal funds rate1 by 50 basis points as part of what the central bank said will be a series of rate increases to combat soaring inflation in the US. Some investors may worry that rising interest rates will decrease ...Read More

  • Dimensional Fund Advisors

    Don't Let Talk of Market Cycles Take You for a Ride

    724
    by Dimensional Fund Advisors — Wednesday, June 15, 2022

    nvestors can be both motivated and well-equipped to see patterns in stock returns. Motivated, because successfully predicting market movements can be lucrative, and well-equipped, because evolution has programmed humans to err on the side of seeing patterns even when they're not ...Read More

  • Dimensional Fund Advisors

    Have the Tech Giants Been DeFAANGed?

    924
    by Dimensional Fund Advisors — Tuesday, May 31, 2022

    Investors expecting FAANG stocks to continue the extraordinary performance of recent years must be disappointed by their returns in 2022 (see Exhibit 1). Four of the five stocks lagged the broad US market through May 5, with Amazon, Facebook (now known as Meta), and Netflix ...Read More

  • David Booth

    Worried About Stocks? Why Long-Term Investing Is Crucial

    1,459
    by David Booth — Wednesday, May 25, 2022

    We are living in a time of extreme uncertainty and the anxiety that comes along with it. Against the backdrop of war, humanitarian crisis, and economic hardship, it’s natural to wonder what effect these world events will have on our long-term investment performance.While ...Read More

  • Dimensional Fund Advisors

    Singled Out: Historical Performance of Individual Stocks

    1,296
    by Dimensional Fund Advisors — Wednesday, May 18, 2022

    Many investors end up holding large concentrated positions in single stocks, whether as the result of employee compensation or a handsomely rewarded stock selection. Familiarity with these stocks or a successful track record while holding them may discourage investors from ...Read More

  • Brad Steiman

    Paradox of Skill

    25,359
    by Brad Steiman — Updated: Monday, April 25, 2022

    Manager selection is a process that requires analyzing noisy performance data, so it should lean heavily on the notion of statistical ...Read More

  • murray@ifa.com

    2022 Q1 Market Review

    1,427
    by Murray Coleman — Monday, April 18, 2022

    Here is a review of the most recent quarter's results for IFA Index Portfolios and representative ...Read More

  • Dimensional Fund Advisors

    Navigating Geopolitical Events

    1,745
    by Dimensional Fund Advisors — Friday, February 25, 2022

    Russia's invasion of Ukraine is an important reminder that geopolitical risk is a part of investing in global markets. Dimensional's systematic active approach is designed to adjust to new information in real time, including information about geopolitical events and their ...Read More

  • murray@ifa.com

    Factor Investing in Bonds

    6,383
    by Murray Coleman — Updated: Monday, February 7, 2022

    Research by Dimensional Fund Advisors looks at key drivers of long-term returns in fixed-income ...Read More