Category: Asset Class Expected Returns
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A Strong First Quarter of 2024 For U.S. Stocks: A Look at Future Long-Term Returns
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Looking at U.S. Stock Returns After Adjusting for Inflation
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A Rough Quarter-to-Date for Equities Brings Forth Higher Expected Returns
(As of Nov. 6, 2023) October 2023 was a rough month for investment returns, with asset class returns in these ranges (as implemented via Dimensional Funds Advisors’ mutual funds and ETFs): U.S. Large Company stocks: – 1.6% to -4.2%, approximately U.S. Small Company stocks: – 4.8% to -6.5%, approximately Foreign Developed Markets Small…
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Should You Invest in the United States or Foreign Equity Markets?
The Spirit of Entrepreneurship I’m a big fan of the United States, the future of its economy, and, as a result, to possessing a home bias with respect to U.S. stocks (versus foreign stocks). Why? Because in the U.S. we have an attitude that makes things happen. In other words, we are a country of…
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Revisiting the Expected Returns of Various Asset Classes
September 30, 2023 After a stellar first half of 2023, the third quarter of 2023 saw losses in most U.S. stock asset classes, and even more significant losses in many U.S. real estate-related asset classes. Despite a dismal September, for the quarter foreign developed markets and emerging markets fared generally better. While there are many…
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Use of Factor Investing in Portfolio Design for Retirees and Accumulators
In previous posts I discussed several “factors” – characteristics of stocks – that can be utilized in portfolio construction to seek to improve equity (stock) returns over long periods of time (10-20 years) with a high degree of probability. Over the next 20 years, exposure to these factors brings with it a very strong probability…