Client Letter – Q3 2008

I want to begin this quarterly letter by acknowledging how wise you have been to “stay the course” during the most severe stock market decline since the Great Depression.  I am very inspired by your courage and commitment to keep a long term perspective. The turbulence that rocked the financial markets over the last several weeks has terrified most investors […]

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Investors’ behavior penalizes growth

The U.S. stock market enjoyed a major bull run in the second half of the 1990s, with the S&P 500 Index climbing an average of almost 29 percent per year between 1995 and 1999.  However, it appears that the average investor did not reap much of that reward, says John Bogle, former chairman of the Vanguard Group, a major mutual fund company. […]

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Want to give your portfolio an edge? Try investing globally

There are nearly 70 stock markets offering their wares to investors around the globe.  Sexy, up-and-coming markets like China beckon, while exotic markets like Turkey’s and Russia’s are growing fast. How should an investor allocate his limited investment dollar?  Probably the best method involves following the actual capitalization of the world’s markets, that is, investing the most in the biggest markets and […]

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Client Letter – Q2 2008

The volatile investment climate has continued. Global stock markets climbed sharply in April and May, only to fall back to their lowest levels of the year in June.  The following chart shows the 1-year, 5-year, and 10-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index:Market Returns for the period ending June 30, 2008 […]

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When should you take Social Security?

A crucial retirement planning decision for many workers involves deciding when to begin Social Security benefits. Anyone can begin collecting as early as age 62, but that means the retiree receives a permanent reduction in benefits that can reach 25% or more. Retirees can also wait until normal retirement age, which currently ranges from 65 and 10 months to 67, […]

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Client Letter – Q1 2008

As you may have heard, it has been a rough quarter for both U.S. and international equity markets.  Nevertheless, a well-diversified portfolio should have weathered the storm much better than an undiversified portfolio.  As you can see from the chart below, the worst performing asset classes this quarter were U.S. large stocks, U.S. small stocks, and emerging markets. The best performing […]

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