Should Investors Fear the "New Normal"? In this video, Kenneth French explains why lower economic growth may not hinder future stock returns. In fact, history shows that average returns tend to be higher during periods of economic difficulty. The information about a current recession is factored into stock prices, and investors may require a higher expected return to induce them to take higher perceived risk.
Retirement, Risk, and Return David Booth discusses the importance of balancing volatility risk and purchasing power risk when investing for retirement. He explains that T-bills or risk free investments have not produced the real returns necessary to preserve living standards over the long haul, and illustrates how investors can manage both types of risk through an appropriate commitment to stocks.
Is This a Good Time for Active Investing? In this short interview, Kenneth R. French explains why active investing is always a negative sum game. We often hear that now is a good time (or a bad time) for active investing. Mr. French believes that this does not make sense. His main argument is that, in general, active investors underperform by their fees and expenses.
More Sellers than Buyers? In this interview, Kenneth R. French explains what is means to say there is a flight to quality? After exploring this simple point, he explains how expectations about future cashflows and future returns affect the current price.
What Should Investors Do Now? Six months after Dimensional's first comprehensive survey of the market downturn, Weston Wellington returns to the topic with a multi-part series on what investors should consider as they move forward. The videos include an examination of capital markets, the effects of recession and government policy on stock prices, how the current market stacks up to previous downturns, and the reasons why Dimensional's core beliefs have not changed in light of these events.
