In love, as in finance, there is some value in being flexible. Buying high can cost you, whether you are purchasing roses at their peak price on Valentine’s Day or buying stocks at the same time as other investors when indices rebalance. Being flexible can save you money, on roses and on stocks.
This video was produced by and first distributed by Dimensional Fund Advisors. Shore Point Advisors adheres to a similar investing philosophy to the one that is implemented by Dimensional Fund Advisors, which is the reasoning for the reposting of this video.
(1) S&P data © 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Indices are not available for direct investment. Index returns are not representative of actual portfolios and do not reflect costs and fees associated with an actual investment. Decrease of 19.6% was from Jan. 1, 2020–March 31, 2020.
(2) Facebook-parent Meta, Amazon, Apple, Netflix, and Google-parent Alphabet.
(3) Gwynn Guilford, “U.S. Inflation Hit 7% in December, Fastest Pace Since 1982,” Wall Street Journal, January 12, 2022.
(4) In US dollars. Russell 3000 Index annual returns December 2019–November 2022. Copyright © FTSE Russell. All rights reserved.
(5) In US dollars. S&P 500 Index annual returns 1926–2021. S&P data © 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.
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Let’s take a look at five of the most common financial adages and review why they are often much easier said than done.