When it comes to investing, a big obstacle many people face is the fear of catastrophe. If you invest in a stock, there’s always the possibility that the value may drop to zero. In fact, we used to have a wall in the office lunchroom that was covered with stock certificates from liquidated companies. Most of those businesses likely had good ideas and solid plans. After all, they had reached a level of success that allowed them to go public. And yet, eventually, each stock certificate was worth only the paper it was printed on.
INVESTMENT PRINCIPLES, ASSET ALLOCATION, MARKET VOLATILITY

Stocks are like tennis: Even having just a marginal winning percentage can lead to long-term success.
INVESTMENT PRINCIPLES

The US stock market has been on a winning streak, so some investors may have been jolted when the S&P 500 fell more than 6% from July 31 to August 5. The Cboe VIX Index, a measure of US stock market volatility, reached 65.7 on August 5. This was its highest level since the COVID-19 pandemic and the largest one-day increase since 1990.
EQUITY INVESTING, INVESTMENT PRINCIPLES, MARKET VOLATILITY

Talk of the size premium has skewed negative recently over its performance in the US, where small cap stock indices have underperformed their large cap index counterparts over the past two decades.
EQUITY INVESTING, INVESTMENT PRINCIPLES

Dimensional Founder and Chairman David Booth recently contributed an op-ed to Fortune about the role uncertainty can play in investment success.

The US presidential election has concluded, but uncertainty remains about what comes next. For those focused on market returns, it can be helpful to look at the historical success of markets across presidencies.
EQUITY INVESTING, INVESTMENT PRINCIPLES

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