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.”
Your financial future is too important to be left to chance. By utilizing an Evidence-Based Investment approach, the team at Cogent Strategic Wealth is about implementing the great ideas in finance for our clients, not speculation.
Your portfolio is no doubt an important driver of your overall financial plan. In response, we start and end with evidence. Our approach is guided by more than 60 years of objective, peer-reviewed research on how markets work.
The strategies in your investment plan are risk-optimized, cost-effective and tax-efficient to enhance your odds of living the life you’ve imagined.
Life is uncertain. The market is even more precarious. This means building wealth has no shortcuts. Success requires a solid investment approach, a long-term perspective, and discipline to stay the course. Instead of leaving your financial future to chance, you need to have a plan.
Cogent Strategic Wealth is here for you.
So, instead of worrying about your future, why not take positive steps to protect it? Set up a Cogent Conversation with us today. We’ll show you how to transform your hard work into durable wealth even through troubling markets.
SCHEDULE A CALL WITH A COGENT ADVISOR
The information in this document is provided in good faith without any warranty and is intended for the recipient’s background information only. It does not constitute investment advice, recommendation, or an offer of any services or products for sale and is not intended to provide a sufficient basis on which to make an investment decision. It is the responsibility of any persons wishing to make a purchase to inform themselves of and observe all applicable laws and regulations. Unauthorized copying, reproducing, duplicating, or transmitting of this document are strictly prohibited. Dimensional accepts no responsibility for loss arising from the use of the information contained herein.
“Dimensional” refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., Dimensional Ireland Limited, DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., Dimensional Japan Ltd., and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.
UNITED STATES: Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.
The opinions expressed by featured authors are their own and may not accurately reflect those of Cogent Strategic Wealth®. This article is for general information only and is not intended to serve as specific financial, accounting or tax advice. By clicking on any of the links above, you acknowledge that they are solely for your convenience, and do not necessarily imply any affiliations, sponsorships, endorsements or representations whatsoever by us regarding third-party Web sites. We are not responsible for the content, availability or privacy policies of these sites, and shall not be responsible or liable for any information, opinions, advice, products or services available on or through them.
© 2021,Dimensional Fund Advisors
