General

by Wes Crill, PhDSenior Investment Director and Vice President The US presidential election has concluded, but uncertainty remains about what comes next. For those focused on market returns, it can be helpful to look at the historical success of markets across presidencies. It’s important for investors to remember that whether you are optimistic or pessimistic about […]

Investors may worry about the impact of interest rate changes by the Federal Reserve. But it’s important to understand that the market and the Fed don’t necessarily move in lockstep. • Consider changes in the closely watched federal‐funds rate, controlled by the Fed, and the yield on the 10‐year Treasury note, a widely followed benchmark in

Recent history shows the challenge of trying to pick “hot” sectors in advance. Sectors represent groups of companies that make similar products or offer comparable services. From 2014 to 2023, no sector was a consistent outperformer (see Exhibit 1). Energy, the best performer in 2016, 2021, and 2022, delivered the worst annual returns six times.

It’s almost Election Day in the US once again. While the outcome may be uncertain, one thing we can count on is that plenty of opinions and predictions will be floated in the days surrounding the vote. In financial circles, this will inevitably include discussion of the potential impact on markets. But should elections influence

Wes Crill, PhDSenior Investment Director and Vice President With the benefit of hindsight, it’s hard to imagine a company not benefiting from the advent of e-commerce in the late 1990s. In fact, it’s easier to remember the blunders from that era. (Hello, pets.com!) Breakthroughs in generative artificial intelligence seem poised to benefit a similarly wide

Wes Crill, PhDSenior Investment Director and Vice President Since April 1, 2022, the yield on the 2-year US Treasury has exceeded that of the 10-year Treasury. This so-called inverted yield curve shape, where longer-dated bonds yield less than shorter-dated bonds, is considered by some as a harbinger of economic recession. While the previous four inversions

by Wes Crill, PHD; DFA Senior Investment Director and Vice President US stock market indices hit all-time highs in recent weeks, leading some investors to wonder whether now is a good time to be in stocks—or do record levels portend an upcoming tumble? The historical data should help allay such concerns. New highs for stocks

by Wes Crill, PHD; DFA Senior Investment Director and Vice President Investors selecting funds based on dividend yield should be aware that high yield is no assurance of higher expected return. Plotting 10-year annualized returns vs. average dividend yield for US large cap equity funds shows no meaningful relation between the two. Many of the