by Michael Evans, Founder & CEO of Cogent Strategic Wealth

Ever since David Booth co-founded Dimensional Fund Advisors in his Brooklyn Heights apartment more than 40 years ago, the firm has by and large crafted its funds around the following, evidence-based investing mantra found in its 2021 Market Review: 

“Investors can’t predict the nature or timing of the next crisis [or opportunity], or the end of any existing ones. But markets are forward-looking and reflect optimism.” 

— Dimensional Fund Advisors, Market Review 2021: A Recovery Amid Challenges

By and large, these assumptions have held true, and worked wonders for those who have focused on enduring sources of returns, while remaining stoic to the never-ending flow of fleeting events. 

Without a sturdy strategy to guide the way, 2021 may have been yet another tempting year in which to lose money. The usual assortment of stumbling blocks tested our footing throughout—from inflationary threats, to cryptocurrency and meme stock temptations, to the irony that the U.S. stock market’s winning streak might feel too good to last (with the S&P 500 reaching 75 distinct closing records on a total-return basis). 

In its 2021 Market Review, Dimensional once again provides well-reasoned commentary paired with illuminating illustrations to help us interpret current events, and return our attention to the long view: How to apply long-term planning and systematic process in fast-moving markets.

We encourage you to read Dimensional’s annual review for yourself

While you’re at it—especially if you’ve been reevaluating your general goals of late—you might enjoy revisiting my lifestyle reflections from this summer: “Reimagine How and Where You Live Your Life: A Personal Anecdote for Imagining and Achieving Your Best You.”

What additional questions can we answer for you as you review these materials? How can you best position your investment portfolio and your life according to these timeless tenets? Let us know! We’d be happy to schedule a Cogent Conversation with you to continue the discussion.  


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