Articles (190)

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  • jackson

    Is a Yield Curve Inversion Bad for Stock Returns?

    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?

    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

    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

    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?

    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

    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

    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

    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


    2022 Q1 Market Review

    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

    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


    Factor Investing in Bonds

    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.

    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


    2021 Q4 Market Review

    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

    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

    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?

    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

    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


    2021 Q3 Market Review

    by Murray Coleman — Thursday, October 21, 2021

    The evidence supporting global portfolio diversification mounted in 2021's third ...Read More

  • Dimensional Fund Advisors

    When It's Value vs. Growth, History Is on Value's Side

    by Dimensional Fund Advisors — Updated: Tuesday, October 5, 2021

    There is pervasive historical evidence of value stocks outperforming growth stocks. Data covering nearly a century in the US, and nearly five decades of market data outside the US, support the notion that value stocks—those with lower relative prices—have higher ...Read More