Portfolio Advisors Blog

"Do you ever listen to the news and find yourself thinking that the world has gone to the dogs? The roll call of depressing headlines seems endless. But look beyond what the media calls news, and there also are a lot of things going right." This article, written by Dimensional Funds Vice President Jim Parker, sheds light on some of the things that are going right.

To read more about this subject, click here: Ten_Reasons_to_be_Cheerful.pdf

This short and compelling article reinforces the premise that "Investors can benefit from consistent exposure to both US and non-US equities." It examines "The Lost Decade," a period in which the S&P 500 recorded a total return of -9.1%. The article goes on to point out that while the S&P 500 was negative for this 10 year period, "conditions were more favorable for global equity investors as most equity asset classes outside the US generated positive returns over the course of the decade." By investing in both US and non-US equities, investors are best positioned to capture global market returns.

Please click this link to access the complete article: Why-Should-You-Diversify.pdf

Two recent articles, written by DFA Vice President Jim Parker, are both timely and compelling. The first article, entitled The China Syndrome, highlights the recent severe volatility in China's stock market, raising questions among many investors about the causes of the fall and the wider implications for the global economy and markets. The second article is entitled Greece is the Word. This article highlights how the world's markets and media financial pages have focused intensely on the standoff between debt-laden Greece and its international lenders. Both news stories have been fast-paced and difficult to keep up with. More importantly, the speculation about possible outcomes has been intense. In his articles, Parker offers insight that provides investors with a unique perspective.

While these world events can be both troubling and unpredictable, we believe the best approach remains diversifying across many countries and asset classes, staying focused on your own goals, and most of all, talking to your chosen advisor who understands your situation best.