The New Capital Journal
Financial news, views, advice, and guidance.
Brought to you by New Capital and our business partners.
Vote with Your Ballot, Not Your Life Savings
This presidential election feels uniquely challenging, but I remain confident in the long-term resilience of the stock market.
Remembering John “Mac” McQuown, Whose Curiosity Drove a Life of Innovation
John “Mac” McQuown, a founding Director of Dimensional Fund Advisors in 1981, was a financial engineer, entrepreneur, and environmentalist with an insatiable curiosity and relentless drive that led him to start more than a dozen companies in his lifetime.
Q3 2024 Review
The stock market overcame a spike in volatility in the third quarter, reaching record levels again, as the Fed cut rates for the first time in four years.
Midyear Review: Stocks Maintain Momentum at Year’s Halfway Point
The market rally that began in the second half of 2023 carried over to the first half of 2024, even as inflation fell slightly and the Fed kept rates steady.
Dimensional 2024 Matrix Book
Dimensional’s annual survey of investment performance draws on historical data to look beyond short-term market fluctuations and shed light on the dimensions that explain differences in returns.
Navigating Uncertainty: A Post-College Road Map
You can thrive in a world of uncertainty and create a life that is uniquely your own.
Q1 Quarterly Market Review
This report features world capital market performance and a timeline of events for the past quarter.
What I See When I Watch Basketball
What I love is witnessing an arena full of athletes trying their absolute hardest, working together to achieve a common goal.
Many Happy Returns
I believe that the key to successful investing is to cultivate a long-term perspective, where you think in decades, not days.
Going Global for Value
Global diversification can increase the reliability of outperformance for strategies pursuing higher than market returns.
Chart of the Week: Magnificent 7 Outperformance May Not Continue
Rather than seeking additional exposure to these mega-cap stocks, investors should ensure their portfolios are broadly diversified to capture the returns of whatever companies ascend to the top in the future
High Rates Don’t Put the Brakes on Stocks
Historical evidence suggests that interest rates have not been meaningful predictors of stock returns.
Q3 Quarterly Market Review
This report features world capital market performance and a timeline of events for the past quarter.
Chart of the Week: Beware of Sample Periods
Investors should evaluate fully representative data rather than falling for the “shiny object” of recent performance.
Practicing Healthy Habits, Pursuing Wealthy Outcomes
Good investing, like good health, requires long-term discipline and commitment.
Chart of the Week: Bulls, Bears, and Long-Term Benefits of Stock Investing
Stock returns are volatile, but nearly a century of bull and bear markets shows that the good times have outshined the bad.
Think Twice about Chasing the Biggest Stocks
As companies grow to become some of the largest firms trading on the US stock market, the returns that push them there can be impressive. But not long after joining the Top 10 largest by market cap, these stocks, on average, lagged the market.
Real-Time Ratings Are More Dynamic than Fitch’s
Markets are forward-looking and the concerns that played into Fitch’s decision are not new information to most investors.
Why A Stock Peak Isn’t A Cliff
Many investors may think a market high is a signal stocks are overvalued or have reached a ceiling.
The Evolution of Small Cap Investing: Four Decades of Innovation at Dimensional
Over the past 20 year, 92% of Dimensional’s small cap funds outperformed their benchmarks vs. only 30% industry-wide.