What Should Investors Do Now?

This is a question we hear often.  Every situation requires a unique solution, but here is a video you might find helpful from one of Willow Creek Financial’s most highly regarded fund providers.

Six months after Dimensional Fund Advisors’ (DFA) first comprehensive survey of the market downturn, Vice President, Weston Wellington returns to the topic with a multi-part series on what investors should consider as they move forward. The videos include an examination of capital markets, the effects of recession and government policy on stock prices, how the current market stacks up to previous downturns, and the reasons why Dimensional’s core beliefs have not changed in light of these events.

Part 1

What Is Dimensional’s Approach under Adverse Business Conditions?

An overview of market equilibrium and why Dimensional’s diversified approach is still the sensible course of action.

 

Part 2

How Do Recessions Affect Stock Prices?

How markets compensate investors for taking higher risk and why risky assets tend to offer higher expected returns during recessions.

Part 3

Why Didn’t We See the Problems Coming?

The difficulty of using forecasting to make portfolio decisions is discussed. Negative performance can be unavoidable even in the face of imminent market turmoil.

Part 4

How Do Recent Stock Market Returns Compare with Previous Downturns?

A survey of bear markets over the past century finds that investor anxiety and media coverage are not unusual in the current market downturn.

Part 5

Is Nationalization a Threat to the Free Enterprise System?

A look at historical stock returns in developed markets explores whether the degree of government intervention in a country offers reliable information about future performance.

Part 6

What Should Investors Do Now?

In light of everything investors have experienced, we assess major investment alternatives in the current market and the best strategy for long-term investors.


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