September 2014 Down To The Wire - CAPE Fear: Valuation Ratios and Market Timing By Weston Wellington Vice President Dimensional Fund Advisors "As broad market indices such as the S&P 500 have set new record highs in recent weeks, many investors have become apprehensive. They fear another major decline is likely to occur and are eager to find strategies that promise to avoid the pain of an extended downturn while preserving the opportunity to profit in...

As we introduced in our last post, we’ve obtained the rights to share what we feel is an excellent series of articles: Evidence-Based Investment Insights. Here is the final post in this seven-part series. In our last piece, “Managing the Market’s Risky Business,” we described how diversification plays a key role in minimizing unnecessary risks and helping you better manage those that remain. Today, we’ll cover one more benefit to be...

As we introduced in our first installment, we’ve obtained the rights to share what we feel is an excellent series of articles: Evidence-Based Investment Insights. Here is the sixth post in this seven-part series.In our last piece, "The Full-Meal Deal of Diversification," we described how effective diversification means more than just holding a large number of accounts or securities. It also calls for efficient, low-cost exposure to a variety of...

As we introduced in our first installment, we’ve obtained the rights to share what we feel is an excellent series of articles: Evidence-Based Investment Insights. Here is the fifth post in this seven-part series. In our last piece, "Financial Gurus and Other Unicorns," we concluded our exploration of the formidable odds you face if you (or your hired help) try to outsmart the market’s lightning-fast price-setting efficiencies. Today, we turn...

As we introduced in our last post, we’ve obtained the rights to share what we feel is an excellent series of articles: Evidence-Based Investment Insights. Here is the fourth in this seven-part series.In our last piece, “Ignoring the Siren Song of Daily Market Pricing,” we explored how price-setting occurs in capital markets, and why investors should avoid reacting to breaking news. The cost and competition hurdles are just too tall....

As we introduced in our last post, we’ve obtained the rights to share what we feel is an excellent series of articles: Evidence-Based Investment Insights. Here is the third in this seven-part series. In our last piece, “You, the Market and the Prices You Pay,” we explored how group intelligence governs relatively efficient markets in an imperfect world. Today, let’s look at how prices are set moving forward. This, too, helps...

As we introduced in our last post, we’ve obtained the rights to share what we feel is an excellent series of articles: Evidence-Based Investment Insights. Here is the second in this seven-part series.When it comes to investing (or anything in life worth doing well) it helps to know what you’re facing. In this case, that’s “the market.” How do you achieve every investor’s dream of buying low and selling high...

The Summer of Investment Insights One popular episode in the TV series Seinfeld was “The Summer of George,” in which George declares, “I’m going to read a book! From beginning to end. In that order.” As our own summer flies by, we’ve got some similar book-reading to do ourselves. We look forward to reporting our book-reading results to you in a future “What Sheri’s Been Reading” post. In the meantime, as...

Part II: The 403(b) Plan: Pocket Change or Life’s Savings? As touched on in Part 1 of our two-part series on 403(b) plans, “A Call for 403(b) Plan “Higher Education,” it was initially assumed that the 403(b) would serve as a supplement – not a replacement – for participants’ traditional pension plan benefits. This may have made sense in the 1950's when the 403(b) plan was introduced and pension plans ruled...

Part I: A Call for 403(b) Plan “Higher Education” When seeking financial advice for managing your retirement plan assets, it seems the 401(k) receives a lot more press than the similar, but different 403(b) plans used by government and tax-exempt groups such as schools, hospitals and churches. Some sound advice does cover all retirement plan ground – and all investing, for that matter. But if anyone in your family participates in...