It’s mind boggling active investing still survives.
Despite all the studies proving its underperformance.
Yet many investors choose to miss out on new opportunities.
Adamant that a tech-driven, science-based, systematic approach to making more money is not for them.
A few days ago, a client emailed my colleague.
He assumed we’re incentivised to sell Dimensional Funds…
Acting as ‘estate agents’ earning fees from both landlords (fund companies) and tenants (investors).
Not surprising, given how ‘traditional’ financial services work…
But what’s so unique about DFA and our own approach is…
We simply believe in the evidence.
With technology taking over most areas of our lives…
Are robo-advisers taking over financial services?
I doubt it.
Most people have heard of value investing.
Warren Buffett became a billionaire following this strategy.
But new research shows the names of many value funds are misleading.
And not all value strategies are created equal.
So before you decide this strategy is right for you…
This week, a reader asked this very question.
And I know why.
It’s against our nature to sit back and do nothing.
As investors, when markets are volatile…
We feel compelled to react.
But this is the last thing we should do.
Brexit has everyone in a tailspin.
UK nationals living in other countries feel especially vulnerable.
The uncertainty regarding their futures…
Not to mention UK pensions…
Hangs heavy over them.
“Expect the best. Prepare for the worst.”
That’s the advice I give clients.
No one knows what the future holds…
But there are ways to mitigate the impact of a downturn.
Risk and volatility sometimes get confused.
(By financial industry insiders too).
While one’s scary, and the other risky…
They don’t have the same consequences on your money.