The Stock Market vs. Stocks in the Market
By David Booth, Chairman and Founder of Dimensional Fund Advisors The collapse of First Republic Bank is a harsh reminder that any stock can go to zero, no matter how established a company is, or how loyal and wealthy its customers are. The failure of what many considered to be a rock-solid regional bank should serve as powerful evidence of the importance of diversification, what I consider to be one of the first principles of investing. If your wealth is highly concentrated in any one individual stock, take this opportunity to learn an important lesson: While many people think …
Midterm Elections – What Do They Mean for Markets?
We are pleased to share commentary and research by Dimensional Fund Advisors about the impact of the upcoming Midterm Elections on markets. It’s almost Election Day in the US once again. For those who need a brief civics refresher, every two years the full US House of Representatives and one-third of the Senate are up for reelection. While the outcomes of the elections are uncertain, one thing we can count on is that plenty of opinions and prognostications will be floated in the days to come. In financial circles, this will almost assuredly include any potential for perceived impact …
Worried About Stocks? Why Long-Term Investing Is Crucial
By David Booth, Executive Chairman and Founder of Dimensional Fund Advisors We are living in a time of extreme uncertainty and the anxiety that comes along with it. Against the backdrop of war, humanitarian crisis, and economic hardship, it’s natural to wonder what effect these world events will have on our long-term investment performance. While these challenges certainly warrant our attention and deep concern, they don’t have to be a reason to panic about markets when you’re focused on long-term investing. Imagine it’s 25 years ago, 1997: J.K. Rowling just published the first Harry Potter book. General Motors is releasing …
