In the first of a four-part series on real-world fixed income investing, Dave Plecha, Global Head of Fixed Income at Dimensional Fund Advisors, discusses the importance of having an investment process that can weather any type of market. He explains why high volatility in the 2020 bond market created pressures on bond index funds, which have less flexibility in what securities they hold and when. He also discusses how balancing stability and flexibility enabled Dimensional to deliver value during that period.
“We could execute our strategies in periods of normal market volatility and in periods of high volatility. That’s how I view robustness.”
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