2016 Market Review

Dimensional Fund Advisors: 2016 Review – More Views Heard From

2016 Market Review

First, we published our own “Year in SAGEbroadview Review,” summarizing the posts we shared in 2016. Then, we offered a double-header of fourth quarter and annual market reviews from Dimensional Fund Advisors. Before we set our sights forward, we’d like to share a couple more resources that offer important lessons learned from 2016.

If you were with us this time last year, you may recall that the markets were in a much gloomier mood amidst a panic-driven sell-off. The demoralizing numbers generated many a grim financial forecast in the early days of 2016, following a year-end 2015 market climate in which “financial optimists seemed in short supply.” 

Not so fast. That may be the biggest take-away from Dimensional’s newly released 2016 Market Review, which we share with you today. While annual 2015 and early-2016 performance had been marred by nearly universal negative-to-low returns (especially from small-cap and value stocks), 2016 annual returns were nearly as polar opposite to that experience as returns can get.

We invite you to take a closer look at this latest review and let us know if we can discuss any of the questions or ideas it may generate. And, in a pairing as fine as a bottle of wine and some excellent cheese, we also invite you to consider Dimensional’s most recent “Down to the Wire” column by the ever-inspiring Wes Wellington, in which he too takes “A Look Back at 2016.”

Combined, they well reflect this quote from Nobel Laureate Eugene Fama, found in the 2016 Market Review: “There’s no information in past returns of three to five years. That’s just noise. It really takes very long periods of time, and it takes a lot of stick-to-it-iveness. You have to really decide what your strategy is based on – long periods of returns – and then stick to it.”

Well said. That said, please let us know if we can say more.

SAGE Serendipity: Here’s a fun list dealing with etymology from James Harbeck in The Week: 11 words whose meanings have completely changed over time. This Rube Goldbergian (now there’s a word for a future article) list takes us through historical meanings of words such as: nice, warp, and cloud to name a few.


Sheri Iannetta Cupo, CFP®, Founding Partner (Retired) & Director
[email protected]

SAGEbroadview Wealth Management is a Fee Only firm offering ongoing financial planning and portfolio management, with tax planning woven carefully throughout our services. We work virtually across the country, with offices in Farmington, CT, Morristown, NJ, and Burlington, MA.