EXPERT INSIGHTS

Hear from Michael George during the White Coat Investor Physician Wellness & Financial Literacy Conference on February 5th-8th 2024! TO REGISTER >

Some investors have asked if stocks make sense in a world where short-term US Treasuries are yielding north of 5.5%.1 These investors can take solace in the historical evidence, which suggests that interest rates have not been meaningful predictors of stock returns.

Investors may be tempted to abandon equities and go to cash when there is a heightened risk of recession. But research has shown that stock prices incorporate these expectations and generally fall in value before a recession even begins.

We are excited to announce that our founder, Michael George, has been chosen as a speaker for the White Coat Investor Physician Wellness & Financial Literacy Conference on February 5th-8th 2024. Register by November 16th to receive a complimentary Swag Bag! You can sign up using the link below. Home – Physician Wellness & Financial […]

Historically, value stocks have outperformed growth stocks in the US, often by a striking amount.

For the last two decades we have trusted the majority of client equity assets to DFA. When we heard that the former co-CEO of DFA was launching a new fund, we were very interested to learn why. Eduardo Repetto, former Chief Investment Officer, retired as co-CEO and co-CIO from DFA in 2017 after 17 years. […]

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 […]

Small value stocks have outperformed over the long term, but returns can vary over time. A 13-month span showed how quickly the premiums can appear.

August 2023 U.S. equities continued to advance in July with the small and mid-cap sectors of the market, on average, outpacing the largest capitalization stocks. Economic headlines for the month were mixed. Non-farm payrolls declined in June and were lower than estimated. The unemployment rate fell slightly to 3.6%. An index measuring manufacturing activity was […]

Going back decades, the premiums were positive over most short periods. But a longer-term focus boosts the odds of rewarding outcomes.

The effect of being out of the market for even a short time can be profound—missing a period of strong returns can drastically impact overall performance.

July 2023 U.S. equities were broadly higher in June with the small and mid-cap sectors of the market, on average, outpacing the largest capitalization stocks. Economic headlines for the month were mixed. Non-farm payrolls continued to show strength in May, coming in above estimates. However, the unemployment rate rose to 3.7%. Indexes measuring non-manufacturing and […]

In the third of three conversations, we hear from Robert Novy-Marx about finding profitability as a driver of expected stock returns 10 years ago.

Investors may wonder whether stock returns will suffer if inflation keeps rising. Here’s some good news: Inflation isn’t necessarily bad news for stocks.

After a strong year for the value premium, investors are curious about what that means for value performance for this year. Staying consistent in your exposure to the value premium can help to capture long-term returns. Past performance is not a guarantee of future results. Actual returns may be lower. Investing risks include loss of […]

June 2023 U.S. equities were mostly lower in May with the largest capitalization stocks, on average, gaining slightly while the mid and small cap sectors of the market had average declines. Economic headlines for the month were mixed. Non-farm payrolls were strong in April, coming in above estimates. The unemployment rate declined slightly to 3.4%. […]

Some investors may worry about the stock market sinking after a recession is officially announced. But history shows that markets incorporate expectations ahead of the news. Investors who look beyond after-the-fact headlines about markets and the economy and stick to a plan may be better positioned for long-term success. Past performance is no guarantee of […]

The debt ceiling is the amount of money Congress has authorized the government to borrow. The ceiling has been raised 78 times since 1960. It’s not clear how the debt ceiling fight will be resolved or how it will impact investors. 

The US stock market has averaged about a 10% annual return since 1926, but it’s usually well above or below that mark in a given year. Understanding the range can help investors ride out the ups and downs.

What does a century of economic cycles teach investors about investing? DFA’s interactive exhibit examines how stocks have behaved during US economic downturns.

May 2023 U.S. equities posted a second month of mixed results in April with the largest capitalization stocks, on average, continuing higher while the mid and small cap sectors of the market had average declines. Economic headlines for the month were mostly negative. Non-farm payrolls came in below estimates for March. The unemployment rate was […]

April 2023 U.S. equities had mixed results in March as the largest capitalization stocks, on average, were higher while the mid and small cap sectors of the market were lower on average. Economic headlines for the month were mostly negative with a few exceptions. Non-farm payrolls came in lower than the strong prior month but […]

Dimensional is No. 17 on Barron’s “5-year Ranking” of fund families and No. 7 on its 10-year list, the longest time horizon included.

FPLCM is honored to announce their certification with CEFEX, the Centre for Fiduciary Excellence, LLC.

January 2023 U.S. equities were broadly lower in December with declines across all capitalization sectors. Economic headlines indicated areas of both strength and weakness. November payrolls came in above estimates and resulted in the unemployment rate remaining unchanged from the prior month. Factory orders increased in October. Vehicle sales and durable goods orders declined. Retail […]

What does a century of economic cycles teach investors about investing? DFA’s interactive exhibit examines how stocks have behaved during US economic downturns.

August 2022 U.S. equities enjoyed a strong rebound in July with gains extending across all capitalization sectors. This was despite the expectations of continued Fed rate hikes and persistent high inflation. Economic headlines were mixed. Factory orders were higher for May. Payrolls continued to advance in June, keeping the unemployment rate at 3.6%. Retail sales […]

How to Interpret the Headlines.

July 2022 U.S. equities suffered broad declines in June with losses extending across all capitalization sectors. The persistent high inflation and concerns that Fed rate hikes would cause a recession weighed heavily on stock prices. Although employment remained strong, some economic headlines pointed to a slowing economy. Factory orders came in below forecast, auto sales […]

The S&P 500 has likely already priced in a recession, according to Jeremy Siegel, which should limit the extent to which the index can fall from its current position. “We’re closer to the lows than the highs,” Siegel, who is a professor of finance at the Wharton School and a regular commentator on markets, told […]

June 2022 After some sharp daily declines, U.S. equities rallied back toward the end of the month to finish higher in May. Small and mid-cap stocks fared better on average than large caps. As inflation concerns continued to weigh on the market, economic headlines pointed to areas of weakness. Manufacturing and non-manufacturing indexes, while still […]

March 2022 U.S. equities had mixed results in February with small and mid-cap equity indexes posting modest gains while large caps declined. The negative market reaction to the disappointing earnings forecast from Meta Platforms helped fuel an early month decline. In addition, anticipation of multiple Fed rate increases this year also put a damper on […]

January 2022 Equity indexes advanced in December with the large, mid and small cap segments of the market all enjoying strong gains.  Economic news headlines were mostly positive for the month. An exception to this was the payroll report for November. Non-farm payrolls increased by only 210,000 which was well below estimates. Manufacturing and non-manufacturing […]

Being selective about when to buy and sell securities can lead to better execution prices—and better returns for investors.

December 2021 Equity indexes declined in November. However, large cap stocks continued their recent outperformance relative to mid and small cap stocks. Economic news headlines were mostly positive for the month. The payroll report for October was strong leading to an unemployment rate of 4.6%. Manufacturing and non-manufacturing indexes continued to indicate expansion. Inflation continued […]

Dimensional Fund Advisors, a global leader in systematic factor investing, will reduce management fees across 47 mutual funds and three exchange-traded funds (ETFs), effective February 28, 2022. The changes represent a 13% reduction on an asset-weighted basis1 for the impacted funds, which cover a broad range of investment solutions, from global equity and fixed income strategies […]

November 2021 Equity indexes posted strong advances in October with large cap stocks outpacing mid and small cap stocks. Economic news headlines were mostly positive for the month. September payrolls came in below estimates. Manufacturing and non-manufacturing indexes continued to indicate expansion. The year over year CPI rate for September was higher. Retail sales continued […]

October 2021 Equity indexes retreated in September with large cap stocks declining more than mid and small cap stocks. Economic news headlines were mixed for the month. August payrolls grew at a disappointing rate. Manufacturing and non-manufacturing indexes continued to indicate expansion. Core inflation was slightly lower in August. Retail sales were higher. Existing and […]

September 2021 Stock averages advanced in August with large cap issues continuing to outpace mid and small cap stocks. Economic news headlines were mostly positive with factory orders, payrolls, manufacturing and services indexes showing growth. Retail sales and durable goods orders for July both declined. CPI remained at its recent elevated rate. The Fed signaled […]

How to Interpret the Headlines.

August 2021 Stock market averages posted mixed results in June as economic headlines had investors vacillating between favoring cyclical or growth issues and ultimately choosing the latter to close the month. Large and small cap indexes outperformed mid-caps in June. The economic news was mostly positive with manufacturing and payrolls reports coEquities posted mixed results […]

Returns can vary over time, but small value stocks have outperformed over the long term. A recent 13-month span showed how quickly the premiums can appear.

For over 40 years, Dimensional has employed a systematic and cost-effective approach to capture every bit of return they can for clients, in the real world.

The impact of missing just a few of the market’s best days can be profound, as this client-ready data visualization of a hypothetical investment in the stocks that make up the S&P 500 Index shows.

Outsize index fund positions in meme stocks draw attention to the style drift arising from infrequent rebalancing. Small cap value index fund investors may have less in small value than they expected.

July 2021 Stock market averages posted mixed results in June as economic headlines had investors vacillating between favoring cyclical or growth issues and ultimately choosing the latter to close the month. Large and small cap indexes outperformed mid-caps in June. The economic news was mostly positive with manufacturing and payrolls reports coming in above estimates. […]

Wes Crill, Head of Investment Strategists and Vice President, spoke to the Financial Times about the “close to unprecedented” rebound of small cap value stocks in recent months

June 2021 After some volatile trading sessions for May, stock market averages finished in positive territory with the small and mid-cap segments outpacing the gains in large capitalization stocks. Earnings reporting season concluded with a larger than average percentage of companies exceeding analysts’ estimates. There were also positive headlines indicating that the economy continues to […]

Stock market slides over a few days or months may lead investors to anticipate a down year. But the US stock market had positive returns in 16 of the past 20 calendar years, despite some notable dips in many of those years.  Intra-year declines for the index ranged from 3% to 49%. Many years with […]

As companies grow to become some of the largest firms trading on the US stock market, the returns that push them there can be impressive. But not long after joining the Top 10 largest by market cap, these stocks, on average, lagged the market.

May 2021 Stock prices moved higher in April with positive average performance across market capitalization sectors. The news headlines during the month continued to reflect economic expansion. The indexes that measure manufacturing and non-manufacturing activity both indicated growth above forecasts. The payrolls report for March also exceeded expectations. Despite the positive headlines there were a […]

This annual report documents the power of market prices by assessing US-based mutual fund performance relative to benchmarks over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds, and the impact of high fees and turnover on manager performance. Returns data updated through 2020.

April 2021 Stock prices continued their advance in March with average performance about equal among the market capitalization segments. Economic news was mostly positive during the month. Higher manufacturing  index readings, rising factory orders and a surprisingly strong payrolls number supported the economic recovery view. Higher treasury yields and inflation fears tended to dampen the […]

Nearly a century of US stock market returns suggests that making investment decisions based on control of the chambers of Congress is unlikely to lead to better investment outcomes. From 1927 to 2020, stocks trended higher regardless of whether Democrats or Republicans controlled the House and the Senate, or whether control was mixed. Actions by […]

We are excited to announce that iQ401k (division of FPL Capital Management) has been selected as the retirement plan service provider for the White Coat Investor 401(k) Plan. iQ401k is an “open architecture” retirement plan platform that offers ERISA fiduciary, third-party administrator, recordkeeping, and custodial services for group and individual 401(k) plans along with defined […]

Direct lending strategies become increasingly popular as investors seek income in today’s low interest rate environment. Learn about the features of direct lending.

The two investment firms agreed to evenly split ownership of hotel operator Read the full article >

With its dramatic price changes, bitcoin may be catnip for traders. But those in search of a sound investment may want to ask some hard questions before joining the excitement.

March 2021 Stock prices were moderately higher, on average, in February. Small capitalization stocks continued their recent outperformance over mid and large cap stocks. Economic news for the month was mostly positive with expansion indicated by manufacturing and non-manufacturing measures. Factory orders and durable goods orders were higher. Retail sales for January were particularly robust. […]

Stock prices remain our best prediction of the future amid continuing technological change.

Learn more about Starwood Capital’s real estate expertise and the investment strategy behind SREIT.

Dimensional’s daily process allowed us to respond in real time to wild swings in GameStop’s stock price, which is an advantage of Dimensional’s approach versus traditional indexing.

With swings by GameStop stock grabbing headlines, this is probably a good time to mention that investing and gambling are not the same thing.

The US stock market has averaged about a 10% annual return since 1926, but it’s usually well above or below that mark in a given year. Understanding the range can help investors ride out the ups and downs.

It’s tempting to chase the dazzling returns posted by Facebook, Amazon, Netflix, Microsoft, Apple, and Google. Here’s why we believe investors should be cautious.

February 2021 Equities turned in mixed price performance in January with small capitalization stocks outperforming mid and large caps. The tumultuous political events early in the month had surprisingly little effect on equity markets. However, comments from the FOMC signaling a slowing economic recovery and worries over the pace of COVID vaccinations weighed heavily on […]

No matter what’s driving a stock spike, it’s important to remember what price changes tell you about expected returns.

Indexing can sometimes leave returns on the table. The latest evidence? The stock price of the iconic electric-car company Tesla soared before joining the widely followed benchmark and slumped quickly after.

The tumult of 2020 showed that markets continue to function and people can adapt to difficult circumstances, even in the face of extraordinary challenges.

January 2021 Stocks continued to advance in December with small capitalization stocks maintaining their outperformance over mid and large caps seen in the prior month. The positive response to FDA approvals of coronavirus vaccines was moderated by an uptick of Covid-19 cases and the discovery of a more transmissible strain of the virus in the […]

December 2020 Stocks powered higher in November with smaller capitalization stocks leading the way. Indexes representing small caps outpaced the mid and large caps for the month. The news of effectiveness of coronavirus vaccines was the primary driver of the market advance. Gains were also helped by some strong economic news and U.S. election results […]

What’s the future of real estate investing? Access insights informed by 85 years of real estate expertise.

November 2020 After a relatively volatile month, stock prices posted a mixed finish for October. Indexes representing the larger capitalization segment of the market ended down for the month while mid and small capitalization indexes advanced. The daily pulse of recovery stimulus spending negotiations in Washington translated to big swings in both directions. Late in […]

Presidents are just one factor potentially affecting markets. History going back to 1926 shows returns in months when presidential elections took place don’t reflect any consistent patterns. The history of the stock market going back to 1926 shows that returns in months when presidential elections took place don’t reflect any consistent patterns.  This chart shows […]

Dimensional will reduce management fees across 33 equity mutual funds, representing a 15% reduction on an asset-weighted basis* for the impacted funds. For a full list of the changes, please refer to the table below. The fee reduction will go into effect February 28, 2021. “For nearly forty years, Dimensional has refined, enhanced and advanced […]

It’s natural for investors to seek a connection between who wins the White House and which way stocks will go. But a look at history underscores that the outcome of an election is only one of many inputs to the market.

Listen to Michael George’s interview with Jeff Weniger, CFA, Director at WisdomTree and co-author of “Market Insights: Planning For Potential 2020 Election Results” as he uncovers how the “blue wave” could affect value stocks and what it means for inflation.

It’s probably not news to most value investors that the value premium has struggled over the past decade. What might be news is just how extreme an outlier recent value stock underperformance represents.

Stock prices reversed course from recent months, as U.S. index averages finished September with a decline. Despite some positive economic news, market sentiment was deflated by perceived slowing of the recovery from the coronavirus shutdown. Manufacturing and services index measures both showed expansion in August. In addition, new and existing home sales had positive results. […]

The anticipation building up to elections often brings with it questions about how financial markets will respond. But the outcome of an election is only one of many inputs to the market. This interactive exhibit examines market and economic data for nearly 100 years of US presidential terms and shows a consistent upward march for […]

John McCarthy, CEO, Starwood Real Estate Income Trust COVID-19 has brought great uncertainty and change, which has impacted virtually every aspect of our daily lives. It has profoundly affected the global economy, including business, healthcare, education, travel, government and naturally where and how we work. Some of the changes brought by COVID-19 will have a […]

This year’s turmoil has inflicted hardships on some firms while presenting opportunities for others—and the stock market is behaving as we might expect.

Fama and French’s 2008 paper, “Dissecting Anomalies,” outlined their study that found sizeable annualized premiums for various investment factors. The study called momentum “the premier anomaly” stating, “The premier anomaly is momentum: stocks with low returns over the last year tend to have low returns while stocks with high past returns tend to have higher […]

What does a century of economic cycles teach investors about investing? Our interactive exhibit examines how stocks have behaved during US economic downturns. Markets around the world have often rewarded investors even when economic activity has slowed. This is an important lesson on the forward-looking nature of markets, highlighting how current market prices reflect market […]

Investors often wonder whether the market will rise or fall based on who is elected president. The data show that capturing the long-term returns of the capital markets does not depend on which party controls the White House. In a recent webcast, Dimensional’s Mark Gochnour and Jake DeKinder offered lessons from history.

Tracking the relative strength (RS) scores of equity styles to the S&P 500 over the last 6 months reveals a noticeable shift. The positive trend in RS scores for small/mid cap value are leading some to wonder is small/mid value resurging and should we expect strong performance going forward. Source: Ford Equity Research

As investors grapple with the new reality of low yields, Starwood outlines the relative value driven by SREIT’s current distribution rate and tax efficiencies.

History shows that you can’t time stock returns. To capture the market’s historical premiums, you have to be patient.

The stock market’s ups and downs are unpredictable, but history supports an expectation of positive returns over the long term. For the best shot at the benefits the market can offer, stay the course. Stock returns are volatile, but nearly a century of bull and bear markets shows that the good times have outshined the […]

Equity prices continued to advance in July. Indexes constituting large, mid, and small capitalization issues all finished with solid gains. News of positive coronavirus vaccine developments had a particularly leavening effect on stock prices. In addition, news pointing to a rebounding economy was released during the month. Payroll numbers for June were above expectations. In […]

Professor Kenneth French explains key principles of a successful investing experience.

When markets are rough, it’s tempting to want to make a quick change to your investments. But much like changing lanes in traffic, impulsive moves can add anxiety and risk with no guarantee you’ll benefit.

Lifting Financials to overweight, Energy to marketweight, while lowering Consumer Staples, Utilities, and Real Estate to underweight. Sector allocation changes since June 3 move cyclical sectors from 670 basis points underweight to 670 overweight. Cyclical Value sectors have been hit hardest by coronavirus, but are now mean reverting.

Dimensional is pleased to announce it has filed a preliminary registration statement with the Securities and Exchange Commission for the launch of three actively managed exchange traded funds (ETFs), planned for later this year. The ETFs will offer broadly diversified, all cap core equity exposure to US, non-US developed, and emerging markets, while incorporating longstanding […]

Logic and history argue for a steadfast commitment to value stocks, as the data covering nearly a century in this post illustrates.

The Institute for Portfolio Alternatives (IPA), in partnership with Robert A. Stanger & Company, Inc. (Stanger) releases a quarterly series of reports tracking the performance of non-listed REITs. The IPA/Stanger Monitor tracks the total return of non-listed REITs, including 49 lifecycle REITS and seven NAV REITs, with a combined market capitalization of over $49.5 billion.

The US stock market has delivered an average annual return of about 10%. Most years, though, have been a lot different than the average. Understanding the range of outcomes can help increase the odds of a successful investment experience in the long term.  

Ford Equity Research’s Price to Value ratio (PVA) is computed by dividing the price of a company’s stock by the value derived from a proprietary intrinsic value model. A PVA greater than 1.00 indicates that a company is overpriced while a PVA less than 1.00 implies that a stock is trading below the level justified […]

How can investors make sense of the apparent disconnect between stock market performance and economic indicators?

In the past century, there have been 15 recessions in the US. In 11 of them, stock returns were positive two years after the recession began. With activity in many industries sharply curtailed in an effort to reduce the chances of spreading the coronavirus, some economists say a recession is inevitable, if one hasn’t already […]

What can investors learn from the growing difference in the price-to-book ratios of value vs. growth stocks?

Professor Jeremy Siegel, WisdomTree’s Senior Investment Strategy Advisor and Professor of Finance at Wharton, provides his perspective on the current market and how to prepare for the Coronavirus aftermath.

This annual report documents the power of market prices by assessing US-based mutual fund performance relative to benchmarks over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds, and the impact of high fees and turnover on manager performance. Returns data updated through 2019.

The US stock market has averaged about a 10% annual return since 1926, but it’s usually well above or below that mark in a given year. Understanding the range can help investors ride out the ups and downs.

Equity prices staged a solid rebound in April as investors started seeing some positive developments in treatments for Covid-19 and a shift in focus to reopening the economy as light at the end of the tunnel. Economic news during the month was not fully reflective of the impact of the shutdown as many of the […]

Don’t flee the market in a panic, but rather embrace the turmoil as an investment opportunity–you’ll be better off in the long run.

Fidelity highlights some of the CARES Act provisions. 

A history of small cap value performance following a bear market.

U.S. equity prices fell dramatically in March as the coronavirus pandemic prompted a shutdown in much of the U.S. economy. The decline was exacerbated by a sharp drop in oil prices due to a price war between Saudi Arabia and Russia. Consequently, the markdown of stocks in the energy sector was severe. Economic headlines for […]

PIMCO CIO Global Credit Mark Kiesel discusses how credit markets are pricing in the evolving economic climate and where PIMCO is beginning to see opportunities.

The Fed’s announcement that it will stop running down its MBS holdings and buy at least $200 billion of mortgages represents a material shift in this market.

Sudden market downturns can be unsettling. Sticking with your plan helps put you in the best position to capture a recovery.

Worth recently shared an essay by Dimensional Founder and Executive Chairman David Booth on how investors can have a rewarding experience by changing the way they think about investing.

It’s hard to predict the best days in the markets, and the cost of missing them can be high. The impact of missing just a few of the market’s best days can be profound, as this look at a hypothetical investment in the stocks that make up the S&P 500 Index shows. A hypothetical $1,000 […]

Watch Origin Principal Dave Scherer discuss how stocks and private real estate differ in volatility using December 2018 through January 2019 as an example.

Watch Origin Principal Michael Episcope explain why investors will benefit from keeping both public REITs and private real estate in their investment portfolios. While public REITs tend to fluctuate with the stock market, private real estate values remains steadily tied to the value of the underlying assets. Owned together, investors get the benefit of being in the […]

Using a representative sample of US-domiciled mutual fund returns from Morningstar, the report documents the power of market prices by assessing fund returns over multiyear periods. The exhibits include data visualizations of fund survivorship and outperformance, persistence of top-quartile funds, and the impact of high fees and turnover on manager performance.   Dimensional’s 2019 analysis […]

Index funds have received increased attention from investors and the financial media. Some people have claimed that greater usage of index funds may be distorting market prices, but despite their growing popularity, the data continue to support the idea that markets are working.

Vanguard Institutional Advisor’s Alpha™: Quantifying the Value of a Consultant addresses the challenges and opportunities institutional consultants face today. While the role consultants play is vital to their clients’ success, the landscape is changing rapidly.

 Looking to add private real estate to your investment portfolio but unsure how much to allocate to this asset class?

For the upcoming midterms, commentators are likely to offer opinions on who will win and what impact the vote will have on markets. Looking at returns since 1926 shows that months when midterm elections took place did not tend to have returns that different than any other month.

Jake DeKinder, Head of Client Communications, explains why investors should view recent market declines as part of the nature of investing.

FPL Capital Management has made it to RIA Channel’s Top 100 Emerging Wealth Managers list for the year ending 2017. The RIA Channel narrows the list down to wealth managers who: are Securities Exchange Commission (SEC) registered Investment Advisors, have at least $100 million in assets under management, provide wealth management services, serve individual clients as primary […]

An Interview with FPL Capital Management CEO, Michael George (by Jim Dahle of WhiteCoatInvestor.com)

Vanguard research has produced a whitepaper on how an advisor can add value to a client. This is part of a series of research available from Vanguard known as Advisor’s Alpha, created in 2001. They believe an advisor can add value, and now they have quantified that to be about 3%.