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Dimensional Fund Advisors

Are We Headed for a Recession?

101
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

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  • Dimensional Fund Advisors

    So What's Your Plan for the Bear Market?

    408
    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

    55,431
    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?

    385
    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?

    425
    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

    251
    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

    277
    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?

    441
    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

    789
    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

    599
    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

    24,481
    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

    892
    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

    1,227
    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

    5,819
    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

  • Dimensional Fund Advisors

    Will Inflation Hurt Stock Returns? Not Necessarily.

    1,049
    by Dimensional Fund Advisors — Wednesday, February 2, 2022

    Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks.A look at equity performance in the past three decades does not show any reliable connection between periods of ...Read More

  • murray@ifa.com

    2021 Q4 Market Review

    1,443
    by Murray Coleman — Monday, January 24, 2022

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

  • Mark Hebner and Murray Coleman

    Eugene Fama: One of A Kind

    31,256
    by Murray Coleman — Updated: Wednesday, January 19, 2022

    Here is a comprehensive listing of research done by one of the prominent academics in the field of financial ...Read More

  • Dimensional Fund Advisors

    Myth-Busting with Momentum: How to Pursue the Premium

    1,971
    by Dimensional Fund Advisors — Wednesday, November 10, 2021

    Nearly 30 years after its formal discovery, the appeal of stock price momentum remains in the eye of the beholder. Some see its outsize historical premium, 9.1% per year in the US, as validation for investing in momentum-focused ...Read More

  • Dimensional Fund Advisors

    CAPE Fear: Should Investors Be Concerned With Market Valuations?

    2,072
    by Dimensional Fund Advisors — Monday, November 8, 2021

    Investors often look for signals indicating whether it’s a good time to get into or out of the market. Market valuation measures, such as the cyclically adjusted price-to-earnings (CAPE) ratio1 of Campbell and Shiller (1998), are frequently portrayed as indicators to ...Read More

  • Dimensional Fund Advisors

    The Surprising Dividends of Transformed Investing

    2,021
    by Dave Goetsch — Wednesday, October 27, 2021

    I’ve been working in sitcom writing rooms for the past 25 years, and one of the most discussed, and least understood, topics is investing. To be in one of those rooms means that you have already beaten odds. In success, the financial benefits can be fast and ...Read More