If you are seeking investment help, look at the video here on my services. If you are seeking a different approach to managing your assets, you have landed at the right spot. I am a fee-only advisor registered in the State of Maryland, charge less than half the going rate for investment management, and seek to teach individuals how to manage their own assets using low-cost indexed exchange traded funds. Please call or email me if interested in further details. My website is at http://www.rwinvestmentstrategies.com. If you are new to investing, take a look at the "DIY Investor Newbie" posts here by typing "newbie" in the search box above to the left. These take you through the basics of what you need to know in getting started on doing your own investing.
Monday, March 14, 2011
Below is a brief overview of the market since the end of WWII by David Booth, founder of Dimensional Fund Advisors. The overview gives a longer-term perspective and stresses the value of staying with a strategy. The times that seem to be the worst for investing oftentimes turn out to be the best and vice versa. In the early 1980s, equities were avoided by many just as they were poised to make an historical run. BusinessWeek, in fact, published their infamous "Death of Equities" cover during this period.
On the other hand, early 2000 looked to investors like a great time to invest. Investors predicted a stock market return of more than 30% for 2000. The subsequent 10 years, which we have recently completed, are now referred to as a "lost decade." As David Booth points out, equities were down 20% on an inflation adjusted basis.
Source: Arianna Capital