DIMENSIONAL’S QUARTERLY MARKET REVIEW (Q3 2019)
Another quarter of contrasts has come and gone, delivering a mixture of modestly positive and negative returns. Despite relatively quiet markets, breaking geopolitical news swarming all around us has been anything but. Meanwhile, the S&P 500 index has continued to log “an incredible decade.”
This may leave you wondering how high stock markets can continue to fly. Especially as pundits continue to predict the next recession is due … if not overdue.
Eventually they’ll be correct. But does that make this a good time to move to the sidelines? As Dimensional’s page 19 chart shows, odds aren’t in a market-timer’s favor. From 1926- 2018, the S&P 500’s average annualized returns 1 year after each new market high has been a whopping 14.7%. That’s a lot of expected return to put at risk by trying to get in and out of various markets at just the right times. As usual, the best course is to stay the course
OPEN PDF: Quarterly Market Review (QMR) – Q3 2019