Biases, or ways of protecting our egos from reality, are evident among many investors and are often encouraged by the media. As humans, we are not wired for disciplined investing. So how do we overcome this? Jim Parker, Vice President of DFA Australia, discusses this problem in the article below.
Fashion designers, manufacturers, and media operate by telling consumers what's in vogue this year, thus artificially creating demand where none previously existed. The same artificial buzz exists in investments. In the attached article, Jim Parker, Vice President of DFA Australia, challenges investment fashions and promotes investment style.
Stocks can reward investors who maintain a long-term outlook. But inconsistent short-term performance may test one's commitment to a long-term strategy. This Insight illustrates the perils of hopping out of a long-term strategy. It rarely works in your favor.
Much financial news purports to be about the future but is really just an account of the past. In the article below, Jim Parker, Vice President of DFA Australia, explores the investing pitfalls created by the financial media and how to avoid them.
The attached review features world capital markets performance and a timeline of events for the last quarter. It begins with a global overview, then features the returns of stock and bond asset classes in the US and international markets. Page 13 illustrates the performance of globally diversified portfolios over multiple calendar periods.
Page 14 is a column titled 'Not Rocket Science' from Jim Parker, V.P. DFA Australia. The column supports Warren Buffet's quote: "The 'know-nothing' investor who both diversifies and keeps his costs minimal is virtually...
In a popular children's story, the young hero pins all his hopes on finding one of a handful of 'golden tickets' hidden among millions of candy bars. In the attached article, Jim Parker, Vice President DFA Australia, reviews how too many people approach investing the same way and avoid the principles of sound investment.
Our Insight on World Market Capitalization is attached. The map included depicts the world not according to land mass, but by the size of each country's stock market relative to the world total market value.
If markets are efficient, global capital will migrate to destinations that offer the most attractive risk-adjusted expected returns. Therefore, the relative size and growth of markets may help in assessing the political, economic, and financial forces at work in countries.
Insight on what to do with an old 401k is attached. What's in it for you? If you have an old 401k account at a former employer, cashing it out before retirement could cost you hundreds of thousands in retirement income—review the math!