During the past year, we have seen an amazing recovery from the financial crash of 2008, especially when you look at your investment returns since the low point in March 2009. The following chart shows the 1-year, 5-year, and 10-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index: Market Returns for the period […]
Quarterly Letters
Client Letter – Q3 2009
During the past quarter, we have witnessed another amazing 3-month rebound, in addition to last quarter. The following chart shows the 3-month, 5-year, and 10-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index: Market Returns for the period ending September 30, 2009 DFA Fund / Index 3 Month Return 5 Year Return* 10 […]
Client Letter – Q2 2009
During the past quarter, we have witnessed the strongest rebound since the markets began falling in late 2007. Global stock markets climbed sharply in April and May, and then held onto most of their gains during the month of June. The following chart shows the 3-month, 5-year, and 10-year performance of many DFA funds (representing different asset classes) compared to […]
Client Letter – Q1 2009
When returns are poor (and sometimes even when they’re good), investors wonder if things have changed. Is this time different? Does a buy-and-hold strategy still make sense? Well, the reality is that nothing has really changed. This is just how markets work. Not surprisingly, I am advising my clients to “stay the course” (at the minimum) and to invest new […]
Client Letter – Q4 2008
Happy New Year! Yes, you are still alive and breathing! The year 2008 was the second worst ever for the U.S. stock market. Only in 1931 did the Standard & Poor’s 500 Index fall by more than 37 percent, turning in a worse showing than 2008. Our overall returns for the full year ranged from -10% to -42%, depending on […]
Client Letter – Q3 2008
I want to begin this quarterly letter by acknowledging how wise you have been to “stay the course” during the most severe stock market decline since the Great Depression. I am very inspired by your courage and commitment to keep a long term perspective. The turbulence that rocked the financial markets over the last several weeks has terrified most investors […]
Client Letter – Q2 2008
The volatile investment climate has continued. Global stock markets climbed sharply in April and May, only to fall back to their lowest levels of the year in June. The following chart shows the 1-year, 5-year, and 10-year performance of many DFA funds (representing different asset classes) compared to the S&P 500 Index:Market Returns for the period ending June 30, 2008 […]
Client Letter – Q1 2008
As you may have heard, it has been a rough quarter for both U.S. and international equity markets. Nevertheless, a well-diversified portfolio should have weathered the storm much better than an undiversified portfolio. As you can see from the chart below, the worst performing asset classes this quarter were U.S. large stocks, U.S. small stocks, and emerging markets. The best performing […]
Client Letter – Q4 2007
Happy New Year! The year 2007 was the most volatile year we have had since 2002. Our overall returns for the full year ranged from 4% to 7%, depending on the level of risk in your portfolio. So, it turned out better than you probably thought! As you can see from the chart below, the worst performing asset classes were […]
Client Letter – Q3 2007
Despite a rocky start in July, your portfolio has fully recovered, as evidenced in the chart below. The one year returns are as strong as any period during the past five years. As I’ve said many times, you simply cannot predict the markets, and this quick recovery is a very welcome surprise! While large U.S. stocks (represented by the S&P […]
