Research indicates that humans are not naturally wired for prudent, long-term investing. Scott Bosworth, Vice President and Regional Director, describes common forms of behavioral bias and discusses how these biases influence investment decision making. He also explains how knowledge and discipline can help investors control their instincts for a better investment outcome. (Running time: 20:00) [...]

Widely cited as the father of the efficient market hypothesis and one of its strongest advocates, Professor Eugene Fama examines his groundbreaking idea in the context of the 2008 and 2009 markets. He outlines the benefits and limitations of efficient markets for everyday investors and is interviewed by the Chairman of Dimensional Fund Advisors in [...]

James L. Davis, Vice President, Dimensional Fund Advisors Investors are concerned about inflation, and rightly so. Average annual inflation in the US between 1929 and 2008 was nearly 3.3%. A dollar at the end of 2008 had about the same purchasing power as eight cents did at the beginning of 1929. Protecting the purchasing power [...]

Ken French The answer depends on why stockholders want to leave the market. During the financial crisis, some investors discovered that their tolerance for risk is lower than they thought, so it might make sense for them to permanently reduce their exposure to equities. Investors who wish to avoid the price impact of the recession, [...]

It seems that every few days or weeks this question comes up again – following some “change” in the financial environment. What if “Cap and Trade” passes? What if our healthcare system is Nationalized? The major banks have been taken over by the government as well as GM’s and Chrysler’s difficulties, what should we do [...]

Professor Ken French speaks to the age old investing question of buy and hold vs market timing on tech|ticker. Buy and Hold vs. Timing the Market @ Yahoo! Video __________ “Investor Education for Main Street America” FacebookTwitter

Eugene Fama, The Robert R. McCormick Distinguished Service Professor of Finance at the University of Chicago Booth School of Business, sat down with Dean Edward Snyder and an audience at the Chicago Booth Management Conference for an informal discussion about financial markets. He discussed common questions on the efficient markets hypothesis, the credit crisis, and [...]

A common theme among new investors is “Dollar Cost Averaging”. Is this a good idea? Well, if it is the only way for you to get invested, than I t hink I would say, “Yes.” But what if you have a sum of money, say $10,000, that is available for investment and your goal for [...]

This recent extremely volatile stock market has gotten many near retirees wondering about their future and how they can safely invest for their retirement. Many, like their grandparents following the Great Depression, are thinking they will not hold stocks. They are too volatile and risky. Savings accounts, Savings Bonds and maybe Treasury Bills will do [...]

With the market still causing consternation for many investors, I thought this presentation from Wes Wellington of Dimensional Fund Advisors would be a good tutorial for how to act during times of adverse business conditions like we have been experiencing for about a year and a half now. Click the link below and take a [...]