In Part 2 of our three-part series on bringing order to your investment universe, we looked at Transitions and Taxes, or how to balance sensible tax management with effective investment planning.Today,
Continue reading...As we touched on in The Beauty of Being Organized, when you sell an investment for more than you paid for it, there can be burdensome capital gain taxes realized in the year of the sale. How do you manage
Continue reading...When it comes to investing, our message has long been loud and clear: Build a well-structured portfolio to capture available market returns while managing the risks involved. Shape it to meet your individual
Continue reading...Today, let’s turn our attention to women and their wealth. Based on available evidence, what are women’s most likely superpowers as they acquire and manage personal wealth? What vulnerabilities might
Continue reading...It’s my favorite time of year again: March Madness, the NCAA competition held each spring to determine the national champions of college basketball.Many fans look forward to predicting who’s going
Continue reading...The 20-year relative return of US small cap value stocks versus the S&P 500 Index dipped negative recently for the first time in US stock market history. Two decades is a long time for an expected
Continue reading...Nearly every year, a handful of securities generate headlines for delivering eye-popping returns. A challenge for investors is determining what portion of that return is a one-off windfall and not something
Continue reading...In a recent episode of the Goldman Sachs Exchanges podcast, Dimensional Founder and Chairman David Booth reflected on his career in applying the finance theory he learned at the University of Chicago’s
Continue reading...Chasing Past PerformanceAs we continue to build from the last blog, discussing common investing mistakes around focusing on headlines. You might be inclined to select investments based on past returns,
Continue reading...Focusing on the HeadlinesAs we continue to build from the last blog, discussing common investing mistakes around trying to time the market. Investors may become enamored with popular stocks based on recent
Continue reading...Trying to Time the MarketInvestors may be tempted to cash out of the stock market to avoid a predicted downturn. But accurately forecasting the market’s direction to time when to buy and sell is a guessing
Continue reading...Some investors attribute the Magnificent 7 stocks’ dominance to a “winner-take-all” environment in which a handful of companies achieve sufficient market share to hinder competition.1 In businesses
Continue reading...There’s plenty of attention on AI, but there’s another, even smarter information-processing machine: the market. Dimensional uses information in prices to put the power of the market to work for investors
Continue reading...The effect of being out of the market for even a short time can be profound—missing a period of strong returns can drastically impact overall performance.
Continue reading...It is natural for investors to want more exposure to last year’s top-performing market segment. The challenge is determining what portion of that return was a one-off windfall and not something to expect
Continue reading...As 2023 began, inflation was elevated, US policy makers were in a rate-hiking cycle, and talk of recession was in the news. Investors could be forgiven for expecting big changes in US Treasury yields before
Continue reading...“A wave of new scientific discoveries reveals that learning to lean into uncertainty in times of rapid change is a promising antidote to mental distress.” –Maggie Jackson, New York Times1For many
Continue reading...The exchange-traded fund (ETF) structure shares certain similarities with mutual funds, but also important differences that investors need to understand, especially if you’re used to investing through
Continue reading...Investors can focus on the daily rain clouds and sunshine the markets bring. Or they can think about the long term.
Continue reading...Ever since President Franklin D. Roosevelt signed off on the 1935 Social Security Act, most Americans have ended up pondering this critical question as they approach retirement: “When should I (or we)
Continue reading...Realized market returns are driven by the difference between investor expectations and the events that actually transpire. If reality pans out better than expected, markets may deliver strong returns along
Continue reading...In July, Dimensional applied for exemptive relief from the US Securities and Exchange Commission (SEC) to be able to offer ETF share classes of our mutual funds. We believe that the ability to offer both
Continue reading...As many of us observed firsthand during the holiday season, eating a slice of pie means less pie remains. While not as tangibly apparent, the same concept applies to stock dividends: A company’s share
Continue reading...Global diversification can increase the reliability of outperformance for strategies pursuing higher than market returns because premiums, like the value premium, do not always move in lockstep across
Continue reading...When you leave your server a tip, do you round it to a whole-dollar amount and often in multiples of $5? Does a 60th birthday seem more significant than a 59th? If you answer yes to these questions, you’re
Continue reading...Some investors use bond ladders for fixed income exposure. A portfolio of bonds with maturities spaced out across a range of years provides a stream of cash flows that decreases the uncertainty around
Continue reading...Investment opportunities exist all around the globe, but the randomness of global stock returns makes it exceedingly difficult to figure out which markets are likely to be outperformers. How should investors
Continue reading...The Magnificent 7 stocks1 continue to capture the focus of investors as these large growth names have outpaced the bulk of global equities. Their outperformance is notable because eye-popping returns for
Continue reading...US government debt reached 121% of the value of the country’s gross domestic product (GDP) last year.1 Many investors have expressed concern over the impact that servicing this level of debt could have
Continue reading...What do vacations and bond portfolios have in common? Expanding beyond opportunities in your home country may be the ticket to enhanced experiences.Yield curves for bonds issued in different currencies
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