Gravel Road Investing

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Owners of all-purpose motor vehicles often appreciate their cars most when they leave smooth city freeways for rough gravel country roads. In investment, highly diversified portfolios can provide similar reassurance. In blue skies and open highways, flimsy city sedans might cruise along just as well as sturdier sports utility vehicles. But the real test occurs… Read More »

Why the Zero-Sum Game Gives Indexing an Edge

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Elizabeth Tammaro: Bob would like to know how the stock market is a zero-sum game. And, Scott, I believe you have some information to provide an answer there. Scott Donaldson: Well, great, and that’s really an important question, I think, in light of certainly the overview that Walter just gave about indexing in general and… Read More »

Living with Volatility, Again

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Condensed from an October 2014 article by Dimensional Vice President Jim Parker Volatility is back. For those people thinking that markets only ever move in one direction, the pendulum has swung the other way. Anxiety is a completely natural response to these events. Acting on those emotions, though, can end up doing us more harm… Read More »