crazy quilt chart 2017

The Crazy Quilt Chart | Updated with 2017 Asset Class Returns

The Quilt That Keeps on Covering a Diversified Investor What a difference a year sometimes DOESN’T make. For several years now, we’ve been tracking the annually updated random returns that comprise what is known as “the crazy quilt chart.” Here are this year’s results: The Crazy Quilt
Continue Reading →
financial headlines

Intro to “Tuning Out the Noise” Video

An Exercise in Confusion: “Tuning Out the Noise” First, take a moment to view this powerful video, just released by Dimensional Fund Advisors.  The new millennium’s biggest financial headlines Now, before you consider the substance, how did the onslaught make you feel? Nervous? Anxio
Continue Reading →
Quarterly Market Review

Dimensional’s Quarterly Market Review (Q1 2018)

A Quarterly Tale of Risks and Returns in Real Time For the first time in a long time, U.S. and international developed stock markets alike bled off some steam this quarter. You’ll see that expressed by the bright red arrows in Dimensional Fund Advisors’ first quarter Quarterly Market
Continue Reading →

Dimensional Fund Advisors: Sailing with the Tides

March 2018 Sailing with the Tides Embarking on a financial plan is like sailing around the world. The voyage won’t always go to plan, and there’ll be rough seas. But the odds of reaching your destination increase greatly if you are prepared, flexible, patient, and well-advised. Here i
Continue Reading →
evidence-based investing

A Two-Course Take on Evidence-Based Investing Part 2: On Diversification and an Advisor’s Role

We’re back! This week, we’re following up on last week’s post on how to combine practical application and academic science to impart a wholly stronger investment strategy. It’s called evidence-based investing, and we are delighted to share excerpts of a conversation between two respec
Continue Reading →
evidence-based investing

A Two-Course Take on Evidence-Based Investing Part 1: On Academics and Practical Advice

There’s little we love more than a spot-on analogy to make simple sense of investment theory – like our recent “3 Things” about how the near-term market often behaves like an unruly dog on a short leash (from “A Wealth of Common Sense” blogger Ben Carlson). That said, while informatio
Continue Reading →
Inflation

3 Things: Inflation, Fact-checking, & State Tax Rates

A “stunning” chart on inflation Barry Ritholtz shares a chart showing Inflation: Price Changes 1997 to 2017 What do you notice about the cost of college as well as health care? “Wages have barely ticked over the median inflation measure, but that did not stop some people f
Continue Reading →
the market

3 Things: The market as an excitable dog on a leash

The market as an excitable dog on a leash 1.  One of my favorite financial bloggers, Ben Carlson, writes in Market Earthquakes: “Ralph Wanger, the eccentric portfolio manager of the Acorn Fund, once summed up the stock market to Bill Bernstein with an analogy about walking a dog: He l
Continue Reading →
Market Volatility

Dimensional Fund Advisors: Recent Market Volatility

Recent Market Volatility February 2018 “While it may be difficult to remain calm during a substantial market decline, it is important to remember that volatility is a normal part of investing” After a period of relative calm in the markets, in recent days the increase in v
Continue Reading →

Dimensional Fund Advisors: New Year, New Market Highs

February 2018 New Year, New Market Highs Every day stocks have a positive expected return regardless of whether markets are at an all‑time high or not. Throughout 2017, the S&P 500 Index recorded 62 new closing highs in 251 days of trading. In the first three weeks of January 2018
Continue Reading →