Blog

David Booth, Chairman and Co-Chief Executive Officer of Dimensional Fund Advisors, discusses the importance of balancing volatility risk and purchasing power risk when investing for retirement.

Our February 19, 2010 blog highlighted an article in the Wall Street Journal that discussed the possibility of a Japanese-style period of deflation in the United States. The article pointed out that although inflation was slightly positive, the core inflation rate (without volatile food and energy prices) was actually negative.

Proponents of active management believe that skilled managers can outperform the financial markets through security selection, market timing, and other efforts based on prediction.

Saddened by the oil spill in the Gulf of Mexico, many Americans follow closely the progress emanating from British Petroleum (BP) on containing the leak. Grunden Financial Advisory, Inc. has the benefit of serving some clients in the oil and gas industry including one who actually worked on the Deepwater Horizon rig that sank in the explosion.

A recent article on CBS Money Watch [1] illustrates how some investors invest in Moringstar’s Five Star Ranked Funds (the highest Morningstar rating available) only to realize they’re late to the party.

There have been more news stories written about Greece in the past month than in the entire 2009 year. No doubt, the Greece debt crisis is the main source of these stories.

Jim Parker, a Vice President at DFA Australia Limited, shares his thoughts on how information is quickly priced into the stock valuations.

Long-time watchers of financial markets know that investors are always worrying about one thing or another. What's not often apparent is how quickly those worries are built into prices and how rapidly the narrative changes.

The current uncertainty of future estate law makes today a great time to review your estate plan. The Economic Growth and Tax Relief and Reconciliation Act of 2001 (EGTRRA) provided for the repeal of the estate and generation-skipping transfer taxes in 2010. No one really believed the repeal would take place.

The US stock market has taken investors on a bumpy ride in recent years. This volatility has tested investor discipline and prompted some people to question their commitment to equities. While no one knows the future, looking at the past may help you gain a better view of long-term market performance and put the recent market volatility in perspective.

When President Bush passed tax cuts in 2003 and 2006, the long-term capital gains rate decreased from 20% to 15% for a specified period of time. These rates applied to investors in the 25% tax bracket or above. For investors in the 10% to 15% tax bracket, the long-term capital gains rate is actually 0%.