From financial turmoil in Greece and China to rising domestic interest rates, the world served up its usual heaping helping of mixed messages during the second quarter, which happened to play out in relatively lackluster returns.
In that context, we invite you to consider Dimensional Fund Advisors’ most recent Quarterly Market Review. As always, a single quarter’s snapshot should not factor into your ongoing decisions on when to buy, sell or hold particular assets. Rather, it’s a helpful reminder of why we approach investing as we do: Global diversification remains your best friend in markets that show no mercy for those on the losing end of overly concentrated bets.
For example, the report reveals that returns from Greece and China actually ranked high among emerging market returns for the quarter. Who would have guessed that without checking the proverbial scorecard? And even as high-flying U.S. home-building growth was grabbing headlines, Real Estate Investment Trust (REIT) returns headed sharply down.
The lesson learned is this: What may seem like an “obvious” market winner or loser one day can turn on a dime – your dime – by the time you have read the news.
After viewing the quarterly numbers, we hope you’ll also take a look at “The Seven Roles of an Advisor,” on the final page of the report. In all the capacities listed, we look forward to helping investors remain informed about what the financial numbers mean to them – and equally as important, what they do not. Let us know if we can help you and your family establish meaning within your own investment activities.