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 […]
AI Tide May Lift All Boats Read Full Article »
Key Takeaways• US stocks extended a bull market, with the S&P 500 reaching a series of record highs in the year’s first half, led by technology stocks.• Core inflation fell slightly but remained above 3% in the US; the Fed kept rates steady, while central banks in Europe and Canada cut interest rates.• Small cap
Midyear Review: Stocks Maintain Momentum at Year’s Halfway Point Read Full Article »
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
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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
What Goes Up Might Not Come Down Read Full Article »
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
Proceed with Caution Focusing on Yield Read Full Article »
by Wes Crill During the National Football League’s recent draft, teams selected from hundreds of prospects to build rosters for the future. It’s my favorite sporting event of the year, mainly because it provides an opportunity to see professional evaluators miss wildly with their projections.1 And while many sources of uncertainty contribute to these misses, NFL
Draft Picks & Value Stocks Read Full Article »
Historically, value stocks have outperformed growth stocks in the US, often by a striking amount. Data covering nearly a century backs up the notion that value stocks—those with lower relative prices—have higher expected returns. Value premiums have often shown up quickly and in large magnitudes. For example, in years when value outperformed growth, the average
When It’s Value vs. Growth, History Is on Value’s Side Read Full Article »
Annual stock market returns are unpredictable, but the long history of positive returns may be reassuring to investors who find market downturns unsettling. The stock market tends to reward investors who can weather annual ups and downs and stay committed to a long-term plan. Past performance is no guarantee of future results. Investing risks include
The Rewarding Distribution of US Stock Market Returns Read Full Article »
Stock market declines over a few days or months may lead investors to anticipate a down year. But the US stock market has had positive annual returns in many years despite some notable dips. Intrayear declines for the index ranged from 3% to 49%. Many years with large intrayear declines saw positive annual returns. In
Do Downturns Lead to Down Years? Read Full Article »
Stock returns are volatile, but nearly a century of bull and bear markets shows that the good times have outshone the bad. The stock market’s ups and downs are unpredictable, but history supports an expectation of positive returns over the long term. Past performance is no guarantee of future results. Indices are not available for
Bulls, Bears, and Long-Term Benefits of Stock Investing Read Full Article »