The Value Added Indexer Blog

US stocks built on a strong first half, with many market indices at or close to record levels as the third quarter ended. But those gains came amid a spike in volatility unseen since the COVID pandemic.

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 that can impact stocks and bonds.

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 long-term investment decisions?

Even if you fall in the camp that is pessimistic about the economy, the history of markets shows that stock returns have often been positive during recessions.

Starting in the mid-1960s when computers became available, leading academics began developing and testing theories with stock market data. Within a short period of time, seminal research came out that paved the way for investing to shift from being a speculative sport to becoming a science.

Dimensional Co-CEO and CIO Gerard O’Reilly answers questions on fund management, including "Is your approach active or passive?"