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CRUDE OIL AND FINANCIAL MARKETS

When many people ask about the relation between oil prices and the stock market, they are specifically asking whether falling oil prices are able to predict declines in the stock market.  To examine this issue, it is necessary to look at the relation between previous oil price changes and subsequent market returns.  Looking at the period 1986-2015, we calculated average monthly stock

BETTER LATE THAN NEVER

January's massive volatility is reminiscent of a story Warren  Buffett told at his Berkshire Hathaway Annual Meeting in 1992.  He made these comments.  As you read them, please consider how much they resonate today.

2016: TEN PREDICTIONS TO COUNT ON

 The New Year is a customary time to speculate.  In a digital age, when past forecasts are available online, market and media professionals find it harder to hide their blushes when their financial predictions go awry.  But there are ways around that.

Dimensional Fund Advisors Advanced Symposium

LeRoy and I will be attending Dimensional Fund Advisors Advanced Symposium in Austin, Texas Oct. 20-23, 2015.

Among some of the noted speakers who will be presenting are:

David Booth- Chairman and Co-Chief Executive Officer

UNHEALTHY ATTACHMENTS

Have you ever made yourself suffer through a bad movie because, having paid the ticket, you felt you had to get your money's worth? Some people treat investment the same way.

Behavioral economists have a name for this tendency to stick with a losing strategy.  It's called the "sunk cost fallacy".

The Patience Principle

Global markets are providing investors a rough ride at the moment, as the focus turns to China's economic outlook.  But while falling markets can be  worrisome, maintaining a longer term perspective makes the volatility easier to handle

Dimensional Research: Bridging the Gap between Academia and Investors

Dimensional brings great academic research to life.  Since their founding, they have forged lasting relationships  with the best academics in the field, gaining insights and inspiration from their work.  This expansive body of research is in the public domain and well  known to financial professionals.

Forfeiting 401(k) match leaves $24B on the table

American workers forfeit an estimated $24 Billion a year by not contributing enough money to their company 401(k) plans to capture their employer's full matching contribution, according to a newly released research project.

Gravel Road Investing

Owners of all-purpose motor vehicles often appreciate their cars most when they leave smooth city freeways for rough gravel country roads.  In investment, highly diversified portfolios can provide similar reassurance.

The Seven Roles of an Advisor

What is a financial advisor for?  One view is that advisors have unique insights into market direction that give their clients an advantage.  But of the many roles a professional advisor should play, soothsayer is not one of them.

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