Someone once said looking forward is more important than looking back. While that’s true, there can be some advantage in taking a glance in the rear-view mirror. In our context, doing a stock market review can be informative—especially when you look back a decade. Why? Because looking at long-term changes allows you to see a better picture of how the stock market is performing overall.

What a Stock Market Review Does for You

A short-sighted look at the stock market may not tell you the complete story. However, by making comparisons over ten years, you can have a clearer view of the data, which means you’ll be better positioned to maintain your own portfolio’s exposure to the risks and expected returns capital markets have to deliver over the long haul. That’s why we are providing you with Dimensional Fund Advisor’s Decade in Review. 

Link to Dimensional’s Decade in Review

How to Respond to a Stock Market Review

The decade review of stocks tells us that sticking with investments during the long haul is a better approach than jumping in and out of funds.  Unfortunately, most of us find that much easier said than done. Can you stick to an investment plan you’ve already got in place to guide you through stressful times?

If you can sit quietly after difficult news; if in financial downturns you remain perfectly calm; if you can see your neighbors travel to fantastic places without a twinge of jealousy; if you can happily eat whatever is put on your plate; if you can fall asleep after a day of running around without a drink or a pill; if you can always find contentment just where you are: you are probably a dog. – Jack Kornfield, PhD, “A Lamp in the Darkness

We Can Help You with Market Reviews

Markets can sometimes feel like bedlam, but our mission never changes: We seek to offer a consistent voice of evidence-based reasoning for your investing. We want to advise you in your quest to earn and preserve personal wealth during confusing times (which is to say, almost always). We can help you analyze where you are so you can plan for a better future. We can answer questions, allay concerns, and keep you headed in the right direction.

Call us today so you can begin this new decade knowing you are taking the best actions to reach your financial goals.


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.
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