Financial Readiness: Preparing Yourself Before Disaster Strikes
Let’s contemplate some of the tried-and-true steps to help better prepare your financial affairs for when disaster strikes.
Why Investors Might Think Twice About Chasing the Biggest Stocks
As companies grow to become some of the largest firms trading on the US stock market, the returns that push them there can be impressive. But not long after joining the Top 10 largest by market cap, these stocks, on average, lagged the market.
Expectations about a firm’s prospects are reflected in its current stock price. Positive news might lead to additional price appreciation, but those unexpected changes are not predictable.
This post was prepared and first distributed by Dimensional Fund Advisors.
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Let’s contemplate some of the tried-and-true steps to help better prepare your financial affairs for when disaster strikes.
Small caps have outperformed large caps handily in developed non-US markets and emerging markets.
Fed watching is an unreliable input into investment decisions because the Fed’s expected actions are already reflected in market prices.
Ask investors what kind of return they expect out of stocks in any given year, and many will say the market’s historical average return.