Equilibrium Markets in the Time of COVID

Over the years, Foster Group has utilized a number of mutual funds and exchange traded funds managed by Dimensional Fund Advisors (DFA). DFA was founded in 1981 on the idea of making academic investment research and empirically based portfolio management accessible to investors. In this article, Professor Kenneth French describes how markets responded to the events surrounding the COVID-19 pandemic.

What’s Your Best Buy: Firm Foundation or Castle In the Air?

If an investor could discover the true worth of a company, a piece of real estate or even an idea, where “true worth” equated to the future value or price that others would pay, success would be almost certain to follow. Those opportunities that were priced significantly lower than the future value would be automatic buys. The one’s with higher prices today than the future price would be ones to avoid. If only it were that simple!