“You don’t get premiums for nothing,” says Professor Eugene Fama, “They are there because you are bearing risk. And that’s the nature of the risk, you could have long periods of time when things just don’t work out. Short, recent periods of data really don’t tell you anything about whether anything has changed.”

In this Issue Brief, Dimensional Fund Advisors examines the relationship between current volatility and subsequent returns. When volatility spikes, remaining disciplined in your investments can be challenging. Pundits are quick to link volatility to any number of impending “crises” and to predict that short term returns will be poor, “Brexit” being a recent example of this.

Last month, I posted a blog about the importance of owning emerging markets in your portfolio. This blog post is a continuation of that discussion and includes a pop quiz. Please take a few minutes to watch the video below by Joel Hefner, a VP with Dimensional Fund Advisors.

For an in-depth look at the world capital market performance and a timeline of events during the past quarter, here is our Quarterly Market Review:

On June 23, citizens of the United Kingdom voted to leave the European Union. While there has been much speculation leading up to and since the vote, many of the longer-term implications of the referendum remain unclear, as the process for negotiating what a UK exit may look like are just beginning.

In this video clip from Dimensional Fund Advisors, Vice President Joel Hefner illustrates the importance of global diversification and discipline by comparing the historical performance of US and emerging markets stocks over sample periods. These periods include a 28-year period from 1988 to 2015 and “The Lost Decade,” from 2000 to 2009.