Category Archives: Article

A Look Back at 2016

By Weston Wellington, Vice President, Dimensional Fund Advisors Every year brings its share of surprises.  But how many of us could have imagined that 2016 would see the Chicago Cubs win the World Series, Bob Dylan receive the Nobel Prize in Literature, Donald Trump elected president, and the Dow Jones Industrial Average close out the year a whisker away from 20,000?

2016 Market Review

By Bryan Harris, Dimensional Fund Advisors In 2016, the US market reached new highs and stocks in a majority of developed and emerging market countries delivered positive returns. The year began with anxiety over China’s stock market and economy, falling oil prices, a potential US recession, and negative interest rates in Japan. US equity markets were in steep decline and had the worst start of Read More →

New Market Highs and Positive Expected Returns

By Dimensional Fund Advisors LP There has been much discussion in the news recently about new nominal highs in stock indices like the Dow Jones Industrial Average and the S&P 500.  When markets hit new highs, is that an indication that it’s time for investors to cash out?  History tells us that a market index being at an all-time high generally does not provide actionable Read More →

A Vote for Small Cap Stocks?

By Weston Wellington, Vice President, Dimensional Fund Advisors In the days immediately following the recent US presidential election, US small company stocks experienced higher returns than US large company stocks.  This example helps illustrate how the dimensions of expected returns can appear quickly, unpredictably, and with large magnitude.

Prediction Season

By Dimensional Fund Advisors LP The close of each calendar year brings with it the holidays as well as a chance to look forward to the year ahead.  In the coming weeks, investors are likely to be bombarded with predictions about what the future, and specifically the next year, may hold for their portfolios.  These outlooks are typically accompanied by recommended investment strategies and actions Read More →

Back to School

By Dimensional Fund Advisors LP With school back in session in most of the country, many parents are likely thinking about how best to prepare for their children’s future college expenses.  Now is a good time to sharpen one’s pencil for a few important lessons before heading back into the investing classroom to tackle the issue.

Negative Real Returns

By Dimensional Fund Advisors LP Nominal interest rates are currently below zero in many countries, including Germany, Denmark, Switzerland, Sweden, and Japan.  These levels have turned the common belief that zero is the lower bound for such rates on its head.  While negative nominal rates are a relatively new phenomenon, periods of widespread negative real returns across countries have been quite common.

History on the Run

By Jim Parker, Vice President, DFA Australia Limited, a subsidiary of Dimensional Fund Advisors LP When news breaks and markets move, content-starved media often invite talking heads to muse on the repercussions.  Knowing the difference between this speculative opinion and actual facts can help investors stay disciplined during purported “crises.”

The Wine Lovers’ Guide to Investing

By Jim Parker, Vice President, DFA Australia Limited, a subsidiary of Dimensional Fund Advisors LP Savoring a vintage wine is one of life’s great pleasures.  But often overlooked in the joy of consumption is the carefully calibrated journey from grape to glass.  Similar levels of care are critical to good investment outcomes.

10 Reasons to be Cheerful

By Jim Parker, Vice President, DFA Australia Limited, a subsidiary of Dimensional Fund Advisors LP Do you ever listen to the news and find yourself thinking that the world has gone to the dogs?  The roll call of depressing headlines seems endless.  But look beyond what the media calls news, and there also are a lot of things going right.