What History Teaches an Investor - Old Peak Finance

What History Teaches an Investor

June 8, 2011

2011_what history teaches

What History Teaches an Investor

June 8, 2011

I recently began offering Dimensional funds for Old Peak clients. Dimensional is a 30-year-old investment company which manages $225 billion for institutions and individual clients of financial advisers like me.

I believe in Dimensonal’s approach because their investing decisions are based on 100 years of market data. They believe history can teach us a lot.

’The lesson of the past century is that bull and bear markets can run for lengthy periods. The duration of a cycle is impossible to predict, and popular sentiment at any time offers little insight about the future. The keys to success are investing for the long-term and keeping a cool head.

Dimensional’s research and performance demonstrate the keys to success are:

  • A broadly diversified portfolio that includes US and international stocks, bonds and other investments
  • Low fees
  • Over-weighting to small and “value” stocks, which over time have out-performed large and “growth” stocks
  • Minimizing trading costs and taxes
  • A long-term horizon with regular “re-balancing” to maintain your portfolio weightings

If you want more info on Dimensional, please go to www.dimensional.com, or call me.

This article is not intended to provide tax, legal, accounting, financial, or professional advice. Readers should seek advice from qualified professionals who can review their specific circumstances. Old Peak Finance endeavors to provide information that is accurate and current. However, we cannot guarantee that this information has not been outdated or otherwise rendered incorrect by new research, legislation, or other changes. Old Peak Finance has no liability or responsibility to any individual or entity with respect to losses or damages caused or alleged to be caused, directly or indirectly, by the information contained on this website.

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