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barometer_goethe_03

The cost of indexing – and an approach how to reduce those costs

There is a cost to indexing that most investors are unaware of. It is called “reconstitution.” What is reconstitution and how may the costs involved be solved? What is an index? An index tracks changes in the markets – think of it kind of like a weather barometer. The first article below discusses how the reconstitution effect […]

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Brain_090407

Investor Discipline – What’s that?

This brief slideshow discusses some elements necessary to recognize that our emotions and reactions to investing and markets often hurt results. Our brains are NOT wired for investing. Discipline and a focus on what you can control are important to success. There is an investing approach that is based on discipline and evidence from research in […]

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20000

DOW 20,000 … the more things change, the more they stay the same!

DOW 20,000. Is that good? Or is that bad? Guess what – this is simply another way point much like DOW 15,000 was, or DOW 10,000, or pick any DOW number. The Power of the Markets Markets don’t know your specific emotions and behaviors – so the markets march on ignoring them. It is best […]

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nyse modern

The Cost of Tracking any Index

Indexes were originally developed in the late 1800’s, early 1900’s, as a barometer to what markets were doing overall, rather than trying to determine trends of the cumulative market by looking at different specific stocks making up the market; because, some stocks may fall, and others may rise in price, but what is the overall […]

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Dimensional

Dimensional via a short video (4 of 4)

What makes Dimensional different? Applying Science to Investing. What are those ideas that came from the rigors of scientific research in finance? Which are the ideas worth paying attention to? This four-part video series will provide insights into those answers.Please click on box below to start your video.     Part 1 of the series. […]

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Dimensional

Dimensional via a short video (3 of 4)

What makes Dimensional different? Applying Science to Investing. This four-part video series will provide insights into these answers. The origins of Dimensional. Implementing great ideas from finance science that are rooted in academia. Please click on box below to start your video.       Part 1 of the series.  Part 2 of the series. Note: […]

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Dimensional

Dimensional via a short video (2 of 4)

What makes Dimensional different? Applying Science to Investing. This four-part video series will provide insights into those answers. It all began in the classroom with professors and students. Please click on box below to start your video.       Part 1 of the series.   Note: Your RSS feed or email may not show […]

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Dimensional

Dimensional via a short video (1 of 4)

What makes Dimensional different? Applying Science to Investing. This four-part video series will provide insights into those answers. The science behind uncovering where returns come from. Please click on box below to start your video.         Note: Your RSS feed or email may not show the embedded part of this blog … […]

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predicition

Second Hand News and Predictions

Predictions are hard to do, especially about the future. (Sidebar: Origins of this quote – you may be surprised). Yet, people seem to believe that they, or somebody, are able to predict what is going to happen next. What is going to happen next? If the news says this, then that? And how do the […]

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Investing_money

The Cost of a Perfect Market Timing Strategy

I recently read a Dimensional study* by the same name. “What if we could construct a strategy with a correlation close to 1 with a perfect market timing strategy? Can we estimate what its returns would have been? Can we use these estimates to understand what the market would have “charged” for a perfect market […]

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