Dimensional Provides Perspective on the Financial Markets

One of our important jobs is to keep informed about the news, the markets and the economy, and determine if any actions are warranted on your behalf. We also aim to keep you as informed as you wish to be.

– Today we share perspective from Dimensional:

Jake DeKinder, Head of Client Communications, and Mark Gochnour, Head of Global Client Services, discuss recent volatility in financial markets and provide perspective on these events in this video. Longish but some good stuff here. If you don’t have time for the entire video, you can skim through and check out some of the helpful graphics. You can also choose ‘closed captions’ if you want to ‘read’ versus ‘listen.’

Dimensional also has some helpful material on their blog, found here.

Recent articles/videos include:

• US Equity Returns Following Past Downturns
• A Transformed Investor’s Reaction to Coronavirus
• The Coronavirus and Market Declines

– We repeat ourselves here but please remember:

Your financial plan and investment portfolios are designed to weather these kinds of events. Together we have worked to ensure you have the “right” amount in checking and savings accounts to pay your bills, with an appropriate amount in cash and bonds (i.e. your target asset allocation) in the portfolios we manage for you. These “boring” bond funds have worked exactly as intended. They play defense for you. They also provide dry powder — when it is time to rebalance, we can sell bonds then buy stocks at reduced prices. If you unexpectedly need cash, we can sell from the bond side instead of locking in losses on the stock side of your portfolio. And we can tap the interest and dividend income generated from your investments.

The portfolio we manage for you is designed for the long haul — for your personal needs and your particular time horizon. Your goals are dramatically different than those of Wall Street traders and their machine-driven algorithms who are measured on daily results, and as investors, we need to act accordingly by not letting their actions dictate our response.

BUT, if the breaking news is leaving you feeling strained to a breaking point, please be in touch with us immediately. Together, we’ll take an objective look at your thoughts, hopes, and fears. Together, we’ll continue to chart a sensible course forward.