The Seductive Nature of Fat Tail Distributions

The Seductive Nature of Fat Tail Distributions

Market prices have shown us that certain companies have benefited from the way society has changed during the COVID-19 crisis. A group of tech-focused businesses, referred to as FAANG stocks, have seen their share values increase in ways that are challenging to put in perspective.

DISCLOSURES: 

Investment involves risks. The investment return and principal value of an investment may fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful. Diversification neither assures a profit nor guarantees against loss in a declining market.

Dimensional makes no representation as to the suitability of any advisor, and does not endorse, recommend, or guarantee the services of any advisor.

All expressions of opinion are subject to change. This content is distributed for informational purposes and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.

©2020 Dimensional Fund Advisors LP. All rights reserved

Indices are not available for direct investment. Their performance does not reflect the expenses associated with management of an actual portfolio.

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.

Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

The video on this page was republished here with permission of Dimensional Fund Advisors. No further republication or redistribution is permitted without the written consent of Dimensional Fund Advisors.