Why Investors Might Think Twice About Chasing the Biggest Stocks
As companies grow to become some of the largest firms trading on the US stock market, the returns that push them there can be impressive. But not long after joining the Top 10 largest by market cap, these stocks, on average, lagged the market.
Is the Stock Market Divorced From Reality?
This year’s turmoil has inflicted hardships on some firms while presenting opportunities for others—and the stock market is behaving as we might expect.
Fama and French’s 2008 paper, “Dissecting Anomalies,” outlined their study that found sizeable annualized premiums for various investment factors. The study called momentum “the premier anomaly” stating, “The premier anomaly is momentum: stocks with low returns over the last year…
Market Returns Through a Century of Recessions
What does a century of economic cycles teach investors about investing? Our interactive exhibit examines how stocks have behaved during US economic downturns. Markets around the world have often rewarded investors even when economic activity has slowed. This is an…
What History Tells Us About Elections and the Market
Investors often wonder whether the market will rise or fall based on who is elected president. The data show that capturing the long-term returns of the capital markets does not depend on which party controls the White House. In a…
SMID Value Resurgence?
Tracking the relative strength (RS) scores of equity styles to the S&P 500 over the last 6 months reveals a noticeable shift. The positive trend in RS scores for small/mid cap value are leading some to wonder is small/mid value…
Rethinking Traditional Income Strategies
As investors grapple with the new reality of low yields, Starwood outlines the relative value driven by SREIT’s current distribution rate and tax efficiencies.
David Booth on Value and Values
History shows that you can’t time stock returns. To capture the market’s historical premiums, you have to be patient.
Bulls, Bears, and Long-Term Benefits of Stock Investing
The stock market’s ups and downs are unpredictable, but history supports an expectation of positive returns over the long term. For the best shot at the benefits the market can offer, stay the course. Stock returns are volatile, but nearly…
Equity prices continued to advance in July. Indexes constituting large, mid, and small capitalization issues all finished with solid gains. News of positive coronavirus vaccine developments had a particularly leavening effect on stock prices. In addition, news pointing to a…
Kenneth French on Market Timing, Investor Confidence, and Portfolio Building
Professor Kenneth French explains key principles of a successful investing experience.
In Markets as in Traffic, Impulsive Moves May Not Help You Get Ahead
When markets are rough, it’s tempting to want to make a quick change to your investments. But much like changing lanes in traffic, impulsive moves can add anxiety and risk with no guarantee you’ll benefit.
Increasing Our Cyclical Value Sector Allocation
Lifting Financials to overweight, Energy to marketweight, while lowering Consumer Staples, Utilities, and Real Estate to underweight. Sector allocation changes since June 3 move cyclical sectors from 670 basis points underweight to 670 overweight. Cyclical Value sectors have been hit…
Dimensional to Launch ETFs
Dimensional is pleased to announce it has filed a preliminary registration statement with the Securities and Exchange Commission for the launch of three actively managed exchange traded funds (ETFs), planned for later this year. The ETFs will offer broadly diversified,…
When It’s Value vs. Growth, History Is on Value’s Side
Logic and history argue for a steadfast commitment to value stocks, as the data covering nearly a century in this post illustrates.
IPA/Stanger Monitor Spring 2020
The Institute for Portfolio Alternatives (IPA), in partnership with Robert A. Stanger & Company, Inc. (Stanger) releases a quarterly series of reports tracking the performance of non-listed REITs. The IPA/Stanger Monitor tracks the total return of non-listed REITs, including 49…
The Uncommon Average
The US stock market has delivered an average annual return of about 10%. Most years, though, have been a lot different than the average. Understanding the range of outcomes can help increase the odds of a successful investment experience in…
Valuation Update for June 2020
Ford Equity Research’s Price to Value ratio (PVA) is computed by dividing the price of a company’s stock by the value derived from a proprietary intrinsic value model. A PVA greater than 1.00 indicates that a company is overpriced while…
Under the Macroscope: When Stocks and the Economy Diverge
How can investors make sense of the apparent disconnect between stock market performance and economic indicators?
Long-Term Investors, Don’t Let a Recession Faze You
In the past century, there have been 15 recessions in the US. In 11 of them, stock returns were positive two years after the recession began. With activity in many industries sharply curtailed in an effort to reduce the chances…
Spread the Word: What’s New with Valuation Ratios
What can investors learn from the growing difference in the price-to-book ratios of value vs. growth stocks?
Professor Siegel On The Markets
Professor Jeremy Siegel, WisdomTree’s Senior Investment Strategy Advisor and Professor of Finance at Wharton, provides his perspective on the current market and how to prepare for the Coronavirus aftermath.
2020 Mutual Fund Landscape
This annual report documents the power of market prices by assessing US-based mutual fund performance relative to benchmarks over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds, and the impact of high…
The Bumpy Road to the Market’s Long-Term Average
The US stock market has averaged about a 10% annual return since 1926, but it’s usually well above or below that mark in a given year. Understanding the range can help investors ride out the ups and downs.
Equity prices staged a solid rebound in April as investors started seeing some positive developments in treatments for Covid-19 and a shift in focus to reopening the economy as light at the end of the tunnel. Economic news during the…
Warren Buffett and the Berkshire Hathaway Annual Shareholders Meeting 2020
The Importance of Staying Invested in Volatile Times
Don’t flee the market in a panic, but rather embrace the turmoil as an investment opportunity–you’ll be better off in the long run.
Fidelity highlights some of the CARES Act provisions.
Staying Invested for the Long Term
What Happened to Small Cap Value?
A history of small cap value performance following a bear market.
U.S. equity prices fell dramatically in March as the coronavirus pandemic prompted a shutdown in much of the U.S. economy. The decline was exacerbated by a sharp drop in oil prices due to a price war between Saudi Arabia and…
Private Real Estate Performance Through Economic Downturns
Do Downturns Lead to Down Years?
Stock market slides may lead investors to anticipate a down year. But a broad market index had positive returns in 15 of the past 20 calendar years, despite some notable dips in many of those years.
Straight From PIMCO: Our Take on Credit Markets
PIMCO CIO Global Credit Mark Kiesel discusses how credit markets are pricing in the evolving economic climate and where PIMCO is beginning to see opportunities.
Straight From PIMCO: What We’re Seeing in the Mortgage Market
The Fed’s announcement that it will stop running down its MBS holdings and buy at least $200 billion of mortgages represents a material shift in this market.
US Equity Returns Following Past Downturns
Sudden market downturns can be unsettling. Sticking with your plan helps put you in the best position to capture a recovery.
David Booth Essay Featured in “Worth”
Worth recently shared an essay by Dimensional Founder and Executive Chairman David Booth on how investors can have a rewarding experience by changing the way they think about investing.
What Happens When You Fail at Market Timing
It’s hard to predict the best days in the markets, and the cost of missing them can be high. The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical…
Value Judgments: Viewing the Premium’s Performance Through History’s Lens
Has value really lost its vigor? While growth stocks have outperformed in the past decade, value returns have largely tracked their long-term historical average. There’s a misconception in the markets: Value stocks have lost their vigor. But a dive into…
Recent Market Volatility
What should you make of recent ups and downs in the stock market? Here’s helpful context on volatility and expected returns. After a period of relative calm in the stock market, investors have experienced increased volatility in recent days. While…
Volatility in Stocks vs. Private Real Estate
Watch Origin Principal Dave Scherer discuss how stocks and private real estate differ in volatility using December 2018 through January 2019 as an example.
Key Questions for the Long-Term Investor
Asking the right questions and following a few key principles can improve your odds of long-term investment success. At some point, most investors ask themselves questions like: “Do I have to outsmart the market to be successful?” or “Will a…
Invest In Both Public REITs and Private Real Estate
Watch Origin Principal Michael Episcope explain why investors will benefit from keeping both public REITs and private real estate in their investment portfolios. While public REITs tend to fluctuate with the stock market, private real estate values remains steadily tied to the…
Timing Isn’t Everything
The lure of trying to time the market may tempt even long-term investors. But outguessing markets isn’t as straightforward as it sounds.
Mutual Fund Landscape 2019
Using a representative sample of US-domiciled mutual fund returns from Morningstar, the report documents the power of market prices by assessing fund returns over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds,…
Matrix Book 2019
The annual survey of investment performance draws on historical data to look beyond short-term market fluctuations and shed light on the dimensions that explain differences in returns. The Matrix Book is a unique a tool for seeing decades of…
The Index Bogeyman
Index funds have received increased attention from investors and the financial media. Some people have claimed that greater usage of index funds may be distorting market prices, but despite their growing popularity, the data continue to support the idea that…
Vanguard Institutional Advisor’s Alpha™: Quantifying the Value of a Consultant
Vanguard Institutional Advisor’s Alpha™: Quantifying the Value of a Consultant addresses the challenges and opportunities institutional consultants face today. While the role consultants play is vital to their clients’ success, the landscape is changing rapidly.
How Much of Your Investment Portfolio Should Be in Private Real Estate?
Looking to add private real estate to your investment portfolio but unsure how much to allocate to this asset class?
Midterm Elections—What Do They Mean for Markets?
For the upcoming midterms, commentators are likely to offer opinions on who will win and what impact the vote will have on markets. Looking at returns since 1926 shows that months when midterm elections took place did not tend to…
Dimensional On: Recent Market Volatility
What should you make of recent ups and downs in the stock market? Here’s helpful context on volatility and expected returns. Jake DeKinder, Head of Advisor Communication, explains why investors should view recent market declines as part of the nature…
Liquid Alt Ragnarök?
Do Mutual Funds Outperform Benchmarks?
Forbes Investing: Don’t Pay Top-Shelf Prices for Simple Strategies
The New 60/40 Portfolio
A high-level overview from Pensions & Investments that illustrates Dimensional’s success with charts on the firm’s growth, performance, and low costs.
FPL Capital Management has made it to RIA Channel’s Top 100 Emerging Wealth Managers for 2017.
FPL Capital Management has made it to RIA Channel’s Top 100 Emerging Wealth Managers list for the year ending 2017. The RIA Channel narrows the list down to wealth managers who: are Securities Exchange Commission (SEC) registered Investment Advisors, have…
An Interview with a Fee-Only Planner
An Interview with FPL Capital Management CEO, Michael George (by Jim Dahle of WhiteCoatInvestor.com)
Vanguard research has produced a whitepaper on how an advisor can add value to a client. This is part of a series of research available from Vanguard known as Advisor’s Alpha, created in 2001. They believe an advisor can add value,…