Dimensional Head of Investment Strategists Wes Crill joins CNBC’s “ETF Edge” to discuss the pitfalls of attempting to time the market (0:15), outguessing vs. outperforming markets (5:25), the role of equities in helping investors meet their goals (7:41), and the benefits of a long-term investment approach (12:31). As usual, Wes explains clearly the extreme difficulty in market timing.
Past performance is no guarantee of future results. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.
In US dollars. For illustrative purposes. The missed best day(s) examples assume that the hypothetical portfolio fully divested its holdings at the end of the day before the missed best day(s), held cash for the missed best day(s), and reinvested the entire portfolio in the stocks in the S&P 500 at the end of the missed best day(s). Returns for the missed best day(s) were calculated by substituting actual returns for the missed best day(s) with zero. Performance data for January 1970–August 2008 provided by CRSP; performance data for September 2008–August 2019 provided by Bloomberg. S&P data provided by Standard & Poor’s Index Services Group.
Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful.
Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
Investments involve risks. The investment return and principal value of an investment may fluctuate so that an investor’s shares, when redeemed, may be worth more or less than their original value. Past performance is not a guarantee of future results. There is no guarantee strategies will be successful.