Dimensional Fund Advisors published a very good short piece on interest rates and stock values this month. I hope you enjoy. Also, please click on the following link to watch a 3 minute video regarding the topic with excellent graphs and visuals. Video Link Please do not hesitate to call with any questions. Read more
“Fools learn from experience. I prefer to learn from the experience of others.”
Otto von Bismarck
“To be prepared against surprise is to be trained. To be prepared for surprise is to be educated.”
James Carse, Finite and Infinite Games Read more
Diversifying sufficiently among uncorrelated risks can reduce portfolio risk toward zero. But financial engineers should know that’s not true of a portfolio of correlated risks.
Harry Markowitz, Nobel Prize Winner, Economics
Diversify across securities, across asset classes, across markets-and across time.
Burton Malkiel, Professor and Author Read more
“The subjective experience of traders is that they are making sensible educated guesses in a situation of great uncertainty. In highly efficient markets, however, educated guesses are no more accurate than blind guesses.”
Daniel Kahneman, Nobel Prize Winner, Economics
Author, Thinking Fast and Slow Read more
“Presidential elections typically don’t have a long-term effect on market performance.”
Vanguard Read more
Dimensional Fund Advisors published a short paper in the last week on the relationship between economic growth and stock returns. I thought you would find it interesting, as it does not follow the “conventional” wisdom. Dimensional takes an evidence based approach, which serves investors well in the long-term. They find that in the short term the relation between economic growth and stock returns in historical data has been weak. Please feel free to reach out with any questions. Enjoy the content. Read more
They think that intelligence is about noticing things are relevant (detecting patterns); in a complex world, intelligence consists in ignoring things that are irrelevant (avoiding false patterns)
Nassim Nicholas Taleb
Mathematician and Author, Fooled by Randomness and The Black Swan Read more
As most people are aware by now, the United Kingdom voted in a referendum on June 23 to leave the European Union. The markets have not reacted well. However, one must take a long-term view. Read more
John F. McCartney
I wanted to let my clients and friends know that my dad passed peacefully on Sunday morning after fighting lung cancer since September of 2014. Read more
“We don’t rise to the level of our expectations, we fall to the level of our training.”
Archilochus
Greek Poet and Soldier Read more
“The market is very, very risky, riskier than the standard models say.”
Benoit Mandelbrot, World Renowned Mathematician, 2004 Read more