Barbells work great at the gym because they put weight on a bar in such a way that it’s balanced, leaving room in the middle for someone to use it to workout. We often see portfolios that are designed like a barbell at the gym: lots of risk in one account and lots of cash or very short-term securities in another. In aggregate, it might produce some balance, but the reality is that it can create some real challenges.
Money is emotional and our “news” cycle is a catalyst. Investors react to what they hear and how they feel, oftentimes to their own detriment.
In this week's edition of Financial Perspectives, Kent Kramer covers everything from basketball and movies to Nobel Prize winners and a unique investment journey with Dave Butler, Co-CEO of Dimensional Fund Advisors.
Watch "Tune Out the Noise": https://film.dimensional.com
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For anyone invested right now, it feels like we’re sinking. But just as boats have lifejackets to keep you afloat, your financial life should have its own lifejackets in place to help keep you from sinking in bear market times like these.
Those of you who keep up with the financial news are likely familiar with the three most quoted indices, the S&P 500, Dow Jones Industrial Average, and the NASDAQ. Sometimes, the returns for all of them are similar, but sometimes they are not.
This year, we have seen a runup in several large names, mostly in the technology space. They have been dubbed the “Magnificent Seven” by financial news publications. Why might this matter to an investor?
Market declines are never enjoyable in the moment. But these kinds of intra-year pull backs are normal when looking at market history.
Recently, a client asked me about sectors. What are they? And how do they fit into a portfolio?
2024 was another great year for the U.S. stock market, with the S&P 500 index returning 25%. Now that the year is over, we can analyze the winners and losers of 2024. Let's take a look.
It's natural to sit down at the end of the year and reflect on what happened. Here is a short recap of what happened in the markets and the world in 2022.
Market conditions are usually not a good reason to change your portfolio. Instead of trying to position your portfolio based on where you think interest rates and inflation will be, talk to your advisor about how your portfolio will support your overall plan.
Sooner or later, we're likely going to see demand cool off. The big question is how quickly inflation alters consumer spending and how quickly that pulls back inflation.
