What lessons can investors learn about the market from a century’s worth of economic cycles? Dimensional Fund Advisors investigates how the stock market has reacted historically to downturns in the US economy. Even during times of diminished economic activity, investors have frequently been rewarded by markets all over the world. This is an important lesson on the forward-looking nature of markets, which highlights how current market prices reflect the collective expectations of market participants for the future of the market.
Always remember that past performance is no guarantee of future results. Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful.
Risk Disclosure: Investing involves risk including the potential loss of principal. No investment strategy can guarantee a profit or protect against loss in periods of declining values. Past performance does not guarantee future results.
This material is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security. The content is developed from sources believed to be providing accurate information; no warranty, expressed or implied, is made regarding the accuracy, adequacy, completeness, legality, reliability, or usefulness of any information. Consult your financial professional before making any investment decision. For illustrative use only.
Stephen Pease, David W. Smiley and Matt Hoaglin are Investment Advisor Representatives with Dynamic Wealth Advisors dba Oxford Financial Planners. All investment advisory services are offered through Dynamic Wealth Advisors.