The Curve Ball
By Jim Parker
DFA Australia Limited
"There’s a school of thought that says the best way to manage a fixed income portfolio is to base your investment decisions on where you think interest rates are headed.
But what if expectations are changing all the time?"
To read more: Open PDF: The Curve Ball....
Down To The Wire - CAPE Fear: Valuation Ratios and Market Timing
By Weston Wellington
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...
We can’t help but love working with a fund manager that is not only intensely loyal to the science of capital markets, but can laugh about it too. These qualities are combined in Dimensional Fund Advisors’ 2013 Review, a market/economic summary that the firm releases each January. While “a lot happened” in 2013, Dimensional reports it was ultimately “a year about nothing.” In a way, it was like the reverse...
In our last blog post, we shared the timeless principles we suggest for your fixed income investing. We also previously presented a Vanguard Funds report demonstrating that actively managed stock funds face punishing odds in their quest to outperform appropriate market benchmarks. But what about in the bond markets, especially in the current climate of potentially rising interest rates? Can active management shine? An additional report from Vanguard helps us...
Interest rates are at historic lows and, for several years now, numerous market pundits have been forecasting an upward move. This leaves many investors fretting about what might happen when rates rise. Some contemplate whether they should be making dramatic changes to their portfolios as a result. It reminds us of that Clash song: “Should I stay or should I go?” This blog post is dedicated to helping you understand...