Client Letter – Q3 2009

During the past quarter, we have witnessed another amazing 3-month rebound, in addition to last quarter. The following chart shows the 3-month, 5-year, and 10-year performance of many DFA funds (representing ...

What can investors expect after the market beating of 2008?

U.S.stocks rallied nearly 50 percent from March 9 through the end of July, but investors who had suffered through a historic 16-month bear market remained defensive. What did it mean and what are the chances ...

Jim Cramer’s record

Mad Money’s Jim Cramer issues buy and sell recommendations to his audience on each show. Just how good are those recommendations? Two professors at Northeastern University performed several statistical ...

Regrets may paralyze some investors

It is bad enough that investors lost a lot of money in 2008 during a frightening world financial crisis. The sudden and swift recovery that began in March may be even worse for panicked investors who had ...

Client Letter – Q2 2009

During the past quarter, we have witnessed the strongest rebound since the markets began falling in late 2007. Global stock markets climbed sharply in April and May, and then held onto most of their gains ...

Client Letter – Q1 2009

When returns are poor (and sometimes even when they’re good), investors wonder if things have changed. Is this time different? Does a buy-and-hold strategy still make sense? Well, the reality is ...

Why intelligent people fell for Bernie Madoff’s Ponzi scheme

The Ponzi scheme run by Bernard Madoff may have cost his investors some $50 billion. For many, the big question is how could seemingly sophisticated investors be so stupid? Even more important, what lessons ...

Those who try to time the stock market get nipped by black swans

Investors suffering during major bear markets are tempted to “time” the market: to sell and avoid the downturn, and then reinvest before the inevitable recovery. It now seems obvious to these ...

If the experts cannot predict the markets, you can’t either

Were you able to predict the global bear market that sucked trillions of dollars out of investors’ pockets in late 2008? In retrospect, it looks like it should have been easy to predict—after ...

Client Letter – Q4 2008

Happy New Year!  Yes, you are still alive and breathing!  The year 2008 was the second worst ever for the U.S. stock market. Only in 1931 did the Standard & Poor’s 500 Index fall by more than 37 ...