Market Pricing: Evidence-Based Investing Insights Part 1 of 4

DimensionalEvidence-Based investing comes from a compilation over more than a half century of many independent peer reviewed research results of how markets work. There are 12 key insights in this 4 part video series.

Here are the first 3 in this 4:28 video about market pricing insights:

  1. Group intelligence – the market does a better job than you can of forecasting prices.
  2. What causes prices to go up and down? The unexpected is impossible to predict ahead of time.
  3. Gurus are like unicorns. A fund manager may outperform for a short period of time, but knowing who they are ahead of time is not possible. Developing a diversified portfolio of fund managers where all outperform is unlikely. The long term is the rest of your life – not some subset of time from the past.

Note: Your RSS feed or email may not show the embedded part of this blog … please go to the blog  to be able to read the complete post.

PS. In the interest of disclosure: I do use DFA sub-managed SA Funds with most clients (not a fund requirement, but a business decision I’ve made). Analogies that explain the difference between investing and planning (Yes, they are different)! :

This blog is not a solicitation; simply an explanation of the basic philosophy and approach.

Note: The video was produced by a different advisory firm – not Better Financial Education. The video describes the basic factors pioneered by Dimensional and many others which Better Financial Education also applies.

 

About Larry Frank, Sr.

Larry R Frank Sr., MBA, CFP®, is an experienced financial advisor and a published author on Retirement Planning Research. Have a financial question? Click Here to Ask Larry

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