David Booth in the Financial Times: Why the Wisdom of the Market Crowd Beats AI
The collective judgment of investors provides the most accurate representation of the pricing of stocks and bonds.
The collective judgment of investors provides the most accurate representation of the pricing of stocks and bonds.
Do your mutual funds try to beat the markets by searching for the "needle in the haystack" stocks? Owning the haystack instead is more effective.
Since 1926, the US stock market has rewarded investors with an average annual return of about 10%. But in any given year, returns may be sky-high, extremely poor, or somewhere in between.
Dimensional Founder David Booth has a simple idea for this year’s graduating class.
Dimensional's Founder and Executive Chairman David Booth reminds us that "Diversification is the practice of spreading investments across a variety of assets. It’s a time-tested strategy to mitigate risk."
Markets don't wait for official announcements that a recession has begun or ended. Investors who look beyond after-the-fact headlines and stick to their plan will be better positioned for long-term success.