Topical Financial Issues
The Power of Compounding—in Health and Wealth
Compounding is one of the most powerful forces in the world. Just ask Albert Einstein, who’s said to have called it the “eighth wonder.” The seemingly small decisions we make every day gain power over time. That’s why it’s important to take the long view and come up with a plan—in both wellness and investing—that creates momentum in the direction of our goals. Don’t squander the power of time when you can recruit it to work in your favor.
Dimensional | Life, Invested | October 2023
You Know More about Investing than You Think You Do
No matter how familiar we are with investing, we’ve all navigated uncertainty, weighed risks and rewards, and made carefully considered tradeoff decisions. Just by being human, we’ve been compelled to tackle the central challenges of life—which also happen to be the central challenges of investing.
Dimensional | Life, Invested | September 2023
Cracks in the Crystal Ball
A standard media device at the start of a financial year is a “lookahead” on the outlook for the coming 12 months. As a reflection on the anxieties of the day, these articles are usually reasonably accurate. But as a forecast of the future, not so much. The forecasts rest on a whole bunch of assumptions that can quickly exceed their use-by date when events change or when at least one of the variables undershoots or overshoots their expectations.
Dimensional | Outside The Flags | July 2023
When Headlines Worry You, Bank on Investment Principles
Rather than rummaging through your portfolio looking for trouble when headlines make you anxious, turn instead to your investment plan. Hopefully, your plan is designed with your long-term goals in mind and is based on principles that you can stick with, given your personal risk tolerances. While every investor’s plan is a bit different, ignoring headlines and focusing on the following time-tested principles may help you avoid
Dimensional | Perspectives | March 2023
This Has Been a Test: Developing a Financial Plan You Can Stick With
The past three years were a good test of whether or not you had an investment plan that was sensible to stick with. So take a moment to think about why you did what you did, and prepare for next time. Because the next three years may be just as uncertain.
Dimensional | Perspectives | December 2022
The Year that Wasn’t
A routine task for financial journalists at this time of year is to write a summary of the year in markets and to survey economists on their expectations for the coming year. These so-called ‘year-enders’ are worth revisiting 12 months on.
Dimensional | Outside The Flags | December 2022
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 important lesson on the forwardlooking nature of markets, highlighting how current market prices reflect market participants’ collective expectations for the future.
Information Hygiene
The pandemic highlighted the importance of medical professionals in protecting our health. The rise of investment scams highlights the role of financial professionals in protecting our wealth.
Dimensional | Outside The Flags | October 2022
Trust the Financial Advisor Who Trusts the Market
With over 200,000 financial advisors in the United States, how do you pick one?
Dimensional | Life, Invested | October 2022
10 Attributes of Great Financial Advisors
Dimensional Fund Advisors have been working with financial advisors for more than three decades. To recognize the impact they have on the investor experience, we compiled a list of 10 attributes of great financial advisors.
Dimensional | Perspectives | October 2022
Riding Out the Storm: Seven Lessons
So this is not 2020 all over again. We can’t be confident there will not be further volatility and the news can get worse before it gets better. But while every crisis is different, the best response for investors is always the same: Focus on what you can control.
Dimensional | Outside The Flags | July 2022
So What’s Your Plan for the Bear Market?
This isn’t about a way to guarantee you a higher return. (For the record, if anyone guarantees you a higher return, stop reading that article or end that Zoom call). This is about having a plan for how you invest. It should prepare you for times like this when the market quickly falls. It should also prepare you for when the market quickly goes up (like it did right after the pandemic started). It should be a plan that lets you stay invested for the long term.
Dimensional | Life, Invested | June 2022
Three Crucial Lessons for Weathering the Stock Market’s Storm
Investors can always expect uncertainty. While volatile periods like the one we’re experiencing now can be intense, investors who learn to embrace uncertainty may often triumph in the long run. Reacting to down markets is a good way to derail progress made toward reaching your financial goals.
Dimensional | Perspectives | June 2022
Will Inflation Hurt Stock Returns? Not Necessarily
Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks.
Is It Time to Sell Stocks?
The money management industry is highly competitive, with more stock mutual funds and ETFs available in the US than listed stocks. If someone could develop a profitable timing strategy, we would expect to see some funds employing it with successful results. But a recent Morningstar report suggests investors should be wary of those claiming to do so. The report examined the results of two types of funds, each holding a mix of 3 Dimensional Fund Advisors Please see the end of this document for important disclosures. stocks and bonds:
Dimensional | Perspectives | February 2022
‘Everything Screams Inflation.’ How to Interpret the Headlines.
After last year’s economic shocks, we shouldn’t be surprised to see prices rebounding.
But the potential for inflation is one among many factors investors take into account when agreeing on a price at which to trade.
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Navigating Geopolitical Events
Accepting that the outcomes of geopolitical events are hard to predict doesn’t mean they’re not important. But as an investor you need to focus on what you can control. That’s why diversification, maintaining flexibility and planning for the unexpected are critical tools, as Karen Umland, Senior Investment Director at Dimensional Fund Advisors, explains in this article.