Outguessing markets is more difficult than many investors might think. While favorable timing is theoretically possible, there isn’t much evidence that it can be done reliably, even by professional investors. Attempting to buy individual stocks or make tactical asset allocation changes at exactly the “right” time presents investors with substantial challenges.
Think like The Big Bang Theory’s Executive Producer, Dave Goetsch Instead. “Seeing all the recent headlines about the sudden downturn in the stock market has transported me back to February of 2009, when I was close to anguish. It’s striking how different I feel now.”
As investors, we have to balance risk and return. It’s our desire to get as high returns as possible while also wanting to avoid the big losses. Diversification allows you to have the right balance between risk and return. How do you get this "free lunch of investing" during this time of market chaos?
When living in uncertain times, it is critical to focus on things that really matter to you AND things you can control. Sit down with your spouse or partner on these 4 ways to better understand your financial situation.
Will my stocks recover from market instability? Is my retirement protected? How will this affect my taxes? If these questions are keeping you up at night, keep reading.
Around the world, people are experiencing highly uncertain times. Dimensional Founder David Booth shares his perspective on what’s happening and why our core beliefs can help us get through.