When it comes to investing, it’s crucial to remember the difference between news and opinion, and how they are sometimes used to forecast the future.

This article discusses the systematic and important ways in which Dimensional Fund Advisors manages cash flows in and out of mutual funds held by New Capital’s clients.

The DFA Quarterly Market Review features world capital market performance and a timeline of events for the past quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets.

The potentially smoother journey that diversification offers may be less entertaining on the way up, but it generally makes for a better experience than leaving investment goals to chance.

Just two years removed from the last US recession, negative stock returns and aggressive US Federal Reserve interest rate hikes have many investors concerned we are headed for another big “R”—if we’re not already there.

It seems some investors have resigned themselves to a new normal of high inflation. However, financial market data tells a different story.

A broad market index tracking data since 1926 in the US shows that stocks have tended to deliver positive returns over one-year, three-year, and fve-year periods following steep declines.

Please join us for our first Zoom-based session of New Capital’s new client program, Money Mindfulness Meditation (MMM).

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.

Please join us for our first Zoom-based session of New Capital’s new client program, Money Mindfulness Meditation (MMM).

Many investors end up holding large concentrated positions in single stocks, whether as the result of employee compensation or a handsomely rewarded stock selection. This can lead to one of the most well-known cautionary tales in finance: tragic declines in wealth from losses in single securities.

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.

Some investors may worry that rising interest rates will decrease equity valuations and therefore lead to relatively poor equity market performance. However, historically, equity returns in the US have been positive on average following hikes in the fed funds rate.

There’s no strong evidence that dividend stocks have delivered superior inflation-adjusted performance during periods of high inflation or rising interest rates.

French develops a flexible and comprehensive framework for portfolio design using the global average of all investors and the global portfolio of all stocks, bonds, and other financial assets as reference points.

Against the backdrop of inflation, the monetary policy response of the US Federal Reserve has become the center of attention for many US and global fixed-income investors.

Watch a recording of our webinar: Ukraine, Russia & Markets presented by Leonard Golub, CFA.

You have made the decision to target the size, value, and profitability premiums in equities, which is great, but it is only a great starting point. There are many questions to consider when incorporating these premiums into real-world asset allocations.

It was a year that showed, again, the difficulty of making investment decisions based on predictions of where markets will go, as well as the enduring benefits of diversification and flexibility.