Predictable Mistakes
We believe that investors increase their chances of success by avoiding predictable mistakes, those practices that sound like they should work but have been shown time and again to have very low probabilities of success.
We believe that investors increase their chances of success by avoiding predictable mistakes, those practices that sound like they should work but have been shown time and again to have very low probabilities of success.
In the first six months of 2024, NVIDIA has seen its stock price appreciate by just under 150%, which represented about 1/3 of the total gain of the S&P 500 in the same period. For those investors who did not own NVIDIA, they are likely experiencing ROMO. This week, Kent Kramer analyzes concentration of value and performance of the global stock market.
International Stocks – Are they necessary?
We believe that investors increase their chances of success by avoiding predictable mistakes -- those practices that sound like they should work but have been shown time and time again to have very low probabilities of success. This week, Kent Kramer examines different studies to help inform our fifth investment principle.
Investors have been puzzled this year, maybe even disappointed, that the bond market broadly has seen negative returns. How can this be when many money markets and bonds have stated yields of more than 5%? This week, Kent Kramer explains why.
No one can time the market and determine when those best months will occur. The best months are surprisingly random. More important than timing the market is time in the market.
A wise investor will advance with science to increase the probability of good investment outcomes. This week, Kent Kramer shares examples of how advances in finance and economics have impacted investor experience.
Have you heard the words, “value” and “growth,” when it comes to investing? Let’s face it: These words are often misunderstood and poorly utilized.
Has Artificial Intelligence been causing you anxiety, or made you wonder about the trustworthiness of investment markets? Be reminded that “educated optimism is an antidote for anxious uncertainty”.
The world is, and has always been, a surprising and uncertain place. This week, Kent Kramer dives into Foster Group's foundational investment principle #2: Embrace Uncertainty. He provides four positive reasons to embrace uncertainty and two big dangers of not embracing it.
Many people are apprehensive about the markets, whether we’re in a bear market or a bull market. The fear of a market correction is always present.
Sometimes headlines are right, but remember they are created to get your attention, not necessarily to provide you with helpful information.
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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There are parallels between concepts in finance and concepts in physics. Let's take a look.
Last year was a very up and down year in the market. That’s not abnormal. In fact, it’s what happens most years. December 12 was the only time last year that I looked at the numbers. In not looking at the numbers throughout the year, I not only minimized worry, but also created the opportunity for a happy surprise.
Investing is a deliberate act, guided by the overarching principles of enhancing expected returns or mitigating portfolio risk. Let’s look at Bitcoin to see how cryptocurrency might look like an investment opportunity.
Right after, “What will the stock market do next?” the positioning question may be the most asked and re-asked question by investors of all types.
Anytime there is something new that gets a lot of media attention, investors should ask themselves, "Is this an opportunity for me or a distraction for what really matters?" This week, Kent Kramer introduces the first of five investment principles for purposeful investors.
I recently listened to a podcast called, “Invest Like the Best, with Patrick O’Shaughnessy”. The podcast is based on an article written by Michael Lewis in the New York Times Magazine back in 2009, about Shane Battier, a professional basketball player who was the ultimate teammate.