Circuit breakers and dimensional’s approach to trading
Recently, several markets, including in the US and Brazil, have hit circuit breakers, where trading is paused for a period after a specified percentage decline in the market. In all cases, trading resumed as planned. Circuit breakers can serve a useful function: they mandate a short halt during which participants can assess new information and […]
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. A broad market index tracking data since 1926 in the US shows that stocks have generally delivered strong returns over one-year, three-year, and five-year periods following steep declines. Fama/French Total US Market Research Index […]
Understanding market downturns
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Market declines and volatility
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Three thoughts during scary markets
So, remember all those times we’ve said that investment risks and expected rewards are related? Coronavirus-fueled fears, driving economic insecurities, aggravating a host of simmering global sore spots, spiraling into stomach-wrenching market sell-offs … Be it confirmed. Today’s unfolding news is the realization of those risks we’ve been talking about all along. In case you’ve […]
How to be positively skeptical part 1: the benefits of having a doubt
“I’m not an optimist. That makes me sound naïve. I’m a very serious ‘possibilist.’ That’s something I made up. It means someone who neither hopes without reason, nor fears without reason, someone who constantly resists the overdramatic worldview.” — Hans Rosling, Factfulness Whether you’re considering an investment opportunity or simply browsing various media for insights […]
Expected returns: a review of 2019 and looking ahead to the 2020s
Each year large Wall Street firms post their expected returns for the next decade. A year ago, we saw the following forecasts: * Denotes a seven-year forecast The biggest thing that stands out here is the poor performance expected by U.S. Equities. Despite 93 years of annualized returns in excess of 9.5%, the best research […]
Putting the national debt in context for investors
The following article by Ethan Gilbert was recently published on Jim Cramer’s website, “TheStreet”, in their retirement section. Ethan began being a guest contributor in 2019. With recent headlines around the increasing national debt, our firm has had clients reach out to ask if they owned Treasuries and if the national debt is something that […]
Three upside-down investment insights
Often, all you need to be an excellent investor is a healthy dose of common sense: A penny saved is a penny earned. Buy low, sell high. Don’t put all your eggs in one basket. That said, the best way to achieve these simple goals isn’t always as obvious. In fact, many of our favorite […]
You, your investments, and the coronavirus
Although we believe it is reasonable to say that few of us know much (if anything at all) about the Coronavirus, it has quickly grabbed global headlines. As the viral news has spread, so too has financial uncertainty. What’s going to happen next? Will it infect our economy? So far, U.S. markets have remained relatively […]