Topical Financial Issues
Long-Term Investors, Don’t Let a Recession Faze You
Investors may be tempted to abandon equities when there is a heightened risk of a recession. But research has shown that stock prices incorporate these expectations and generally fall in value before a recession even begins.
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.
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.
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.
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.
So What’s Your Plan for the Bear Market?
If you’re stressed out about what is happening right now in the stock market, there is a better way to invest.
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.
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.
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.
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.
Trust the Financial Advisor Who Trusts the Market
With over 200,000 financial advisors in the United States, how do you pick one?
When Headlines Worry You, Bank on Investment Principles
On Friday, March 10, regulators took control of Silicon Valley Bank as a run on the bank unfolded. Two days later, regulators took control of a second lender, Signature Bank. With increasing anxiety, many investors are eyeing their portfolios for exposure to these and other regional banks.
‘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.
Riding Out the Storm: Seven Lessons
Two years since the pandemic shock helped drive global share markets down 30-40% in the space of weeks, volatility is back.
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.
The Power of Compounding—in Health and Wealth
Don’t settle for the status quo when you can do just a little bit better—because a little bit becomes a lot over time.
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Latest articles
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.
Dealing with Geopolitical Risk
Some investors believe they can predict both the outcome of complex geopolitical situations and how this will affect financial markets. That’s a tall order. A better approach, says this article, is to ask yourself whether your portfolio remains appropriately diversified for a range of outcomes and whether there has been any change in your objectives.
Feeling Stressed About the Market? Buffett Says It’s Time to Rethink Your Strategy
Market drops. Interest rates. Global shocks. Political curveballs. For investors, it’s felt like a bit of a rollercoaster lately.