Footnotes

  1. 1Source: MSCI World Index
  2. 2Source: Bloomberg Barclays Global Aggregate Bond Index

Disclosures

This information is for educational purposes only and should not be considered investment advice or an offer of any security for sale.

Diversification neither assures a profit nor guarantees against loss in a declining market.

Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.


Market Price Tells Us About Long-Term Expected Returns, Says Dimensional Fund Advisors

Always amusing to see people from Dimensional interviewed on TV. Although the anchor desperately tries to extract the usual fluff about market signals, Peng Chen, Asia ex-Japan chief executive officer at Dimensional Fund Advisors, calmly explains how markets actually work.

I saw this video from one of Robin Powell’s posts on LinkedIn.

From Bloomberg:Peng Chen, Asia ex-Japan chief executive officer at Dimensional Fund Advisors, discusses his investment strategy, the signals he’s seeing in equities and fixed income markets, his portfolio, investing in commodities, his views on risk, his strategy for gold and investing in a low-rate environment. He speaks exclusively on “Bloomberg Daybreak: Asia” from the sidelines of the Milken Institute Asia Summit in Singapore. (Source: Bloomberg).



Jim Cramer “Evolves” Into Advocate For Index Funds

If you follow Jim Cramer’s CNBC show, “Mad Money,” you finally heard advice that may help improve your odds of success.

Cramer once flipped out on a CNBC guest who promoted John Bogle’s approach to investing, screaming “I’ve had it with the people who tell me about the index fund.”

I’ve mentioned Cramer in some of my blogs, media mentions, and articles as an example of why you should ignore the financial news media. His show is entertainment, as is almost everything else you see on CNBC and the other financial news channels. The advice and information you get from these shows rarely have anything to do with principles that actually help your odds; on the contrary, watching these channels can be detrimental to your investment success. And if you like picking stocks or timing the market, then you shouldn’t have been watching Cramer at all. His track record is dismal.

It took Cramer a long time to “evolve,” despite decades of data, research, and empirical evidence that showed speculation to be a losing investment strategy. Rather than being criticized for ignoring the evidence for so long, he should be given some credit for admitting the change in his attitude toward indexing after all this time. His audience will benefit. Here’s the full article. And here’s part of the clip: