The Diversified Blog

A wealth management blog dedicated to creating a long lasting sustainable retirement.

Lessons for the Next Crisis

Here is a nice article provided by Dimensional Fund Advisors:

 

Capital markets have rewarded investors over the long term, and having an investment approach you can stick with may better prepare you for the next crisis and its aftermath.

 

CLICK HERE TO READ MORE:

...
Continue reading
29 Hits
0 Comments

Will White House Scandals Derail the Stock Market?

Here is a nice article provided by Anne Kates Smith of Kiplinger:

 

By Anne Kates Smith, Senior Editor, From Kiplinger's Personal Finance, August 2017

 

Investors are wondering if the stock market’s Trump bump could morph into the Trump slump as questions continue to swirl around the White House regarding its Russia connections. It’s a high-stakes concern. Since President Trump’s election in November, stocks have risen 14% on high hopes for the president’s pro-business agenda, which includes corporate tax cuts and regulatory rollbacks. But policy has been overshadowed by probes in Congress and in the Justice Department.

...
Continue reading
85 Hits
0 Comments

How Survivorship Bias Can Skew Your Views on Mutual Fund Performance - 2017

How Survivorship Bias Can Skew Your Views on Mutual Fund Performance updated thru 2016

 

It’s important to avoid treating the market like a popularity contest by chasing outperformers or running away from the underdogs. But neither do most investors want to go into the market entirely blind. For that, there are database services that track and report on how various fund managers and their offerings have performed.

 

Besides ample evidence that past performance does not predict future returns, there is another reason we advise investors to proceed with caution when considering past performance: Many returns databases are weakened by survivorship bias.

...
Continue reading
99 Hits
0 Comments

The Uncertainty Paradox

Here is a nice article provided by Dimensional Fund Advisors:

 

“The market hates uncertainty” has been a common enough saying in recent years, but how logical is it? There are many different aspects to uncertainty, some that can be measured and some that cannot. As individuals, we can feel more or less uncertain, but that is a distinctly human phenomenon.

CLICK HERE TO READ MORE:

The-Uncertainty-Paradox.pdf

...
Continue reading
138 Hits
0 Comments

13 Ways to Simplify Your Finances

Here is a nice article provided by the Editors of Kiplinger’s Personal Finance:

 

By the Editors of Kiplinger’s Personal Finance | From Kiplinger's Personal Finance, May 2017

 

We know you're stressed out. Our strategies can help you simplify, streamline and organize your financial life to free up both time and cash.

...
Continue reading
144 Hits
0 Comments

Evolution of Financial Research: The Profitability Premium

Here is a nice article provided by Dimensional Fund Advisors:

 

Since the 1950s, there have been numerous breakthroughs in the field of financial economics that have benefited both society and investors. An important insight is how profitability and market prices can be used to increase the expected returns of a stock portfolio without having to attempt to outguess market prices.

CLICK HERE TO READ MORE:

The-Profitability-Premium.pdf

...
Continue reading
139 Hits
0 Comments

Going Global: A Look at Public Company Listings

Here is a nice article provided by Dimensional Fund Advisors:

 

To build a well-diversified portfolio, an investor has to look beyond any single country’s stock market and take a global approach.

CLICK HERE TO READ MORE:

A-Look-at-Public-Company-Listings.pdf

...
Continue reading
134 Hits
0 Comments

Investment Shock Absorbers

Here is a nice article provided by Jim Parker of Dimensional Fund Advisors:

 

Ever ridden in a car with worn-out shock absorbers? Every bump is jarring, every corner stomach-churning, and every red light an excuse to assume the brace position. Owning an undiversified portfolio can trigger similar reactions.

CLICK HERE TO READ MORE:

Investment-Shock-Absorbers.pdf

...
Continue reading
138 Hits
0 Comments

The Reality of Models

Here is a nice article provided by Dimensional Fund Advisors:

 

Investors who are evaluating investment strategies can benefit from understanding that the reality of markets, just like the weather, cannot be fully explained by any model. Hence, investors should be wary of any approach that requires a high degree of trust in a model alone.

CLICK HERE TO READ MORE:

The-Reality-of-Models.pdf

...
Continue reading
135 Hits
0 Comments

Models, Uncertainty, and the Importance of Trust

Here is a nice article provided by Marlena Lee of Dimensional Fund Advisors:

 

Models are approximations of the world. They can be useful for gaining insights that help us make good decisions. But they can also be dangerous if someone is over confident and does not understand their limitations. 

CLICK HERE TO READ MORE:

Models-Uncertainty-and-the-Importance-of-Trust.pdf

...
Continue reading
131 Hits
0 Comments

New Market Highs and Positive Expected Returns

Here is a nice article provided by Dimensional Fund Advisors:

 

When markets hit new highs, is that an indication that it's time for investors to cash out? History tells us that a market index being at an all-time high generally does not provide actionable information for investors. 

CLICK HERE TO READ MORE:

New-Market-Highs-and-Positive-Expected-Returns.pdf

...
Continue reading
135 Hits
0 Comments

Prediction Season


Here is a nice article provided by Dimensional Fund Advisors:

 

Predictions about future price movements come in all shapes and sizes, but most of them tempt the investor into playing a game of outguessing the market. It is wise to remember that investors are better served by sticking with a long-term plan rather than changing course in reaction to predictions and short-term calls. CLICK HERE TO READ MORE: 

Prediction-Season.pdf

 

...
Continue reading
147 Hits
0 Comments

The Dimensional Active Passive Powerhouse

Here is a nice article provided by Jason Zweig of The Wall Street Journal:

 

The fastest growing major mutual-fund company in the U.S. isn't strictly an active or passive investor. It is both. Dimensional Fund Advisors is the sixth-largest mutual-fund manager, drawing nearly $2 billion in net assets a month at a time when investors are fleeing many other firms. 

CLICK HERE TO READ MORE:

 The-Active-Passive-Powerhouse.pdf

...
Continue reading
160 Hits
0 Comments

Time-Tested Tactics to Build Your Wealth

Here is a nice article provided by the Editors of Kiplinger’s Personal Finance:

 

By the Editors of Kiplinger’s Personal Finance | April 2017

 

We have doled out a lot of good advice over the 70 years we’ve been publishing Kiplinger's Personal Finance magazine. So in many ways it was easy to come up with 70 ideas on how to create wealth. But when our editorial staff submitted nearly 300 ideas, the editors had to roll up our collective sleeves and distill the advice into absolute gems.

...
Continue reading
162 Hits
0 Comments

Let us give you a second opinion

Contact us to schedule a no-cost no-obligation consultation and receive a free special report called Finding the Right Financial Advisor - Seven Questions to Help You Discover Whether a Financial Advisor Is the Right Match for You and Your Family.