Even If the Fed Starts Lowering Rates, We’re Not Out of the Woods Yet
Fed Chair Jerome Powell has hinted strongly recently about a potential rate cut in September. No surprise there. Conventional wisdom says lower interest rates are good for the economy because they stimulate economic growth, boost consumer spending, encourage investment, and allocate more capital to reducing debt. The stock market tends to respond positively because cheaper […]
Dimensional: Five Things I Know about Investing
“My goal is a portfolio I can justify to myself today, based on the information available now. Because unexpected returns will dominate the outcome, I won’t judge my choice on what the portfolio delivers tomorrow.” — Kenneth R. French Read the Article
From the Archives: The Arithmetic of Active Management (1991)
“The best way to measure a manager’s performance is to compare his or her return with that of a comparable passive alternative. The latter — often termed a ‘benchmark’ or ‘normal portfolio’ — should be a feasible alternative identified in advance of the period over which performance is measured. Only when this type of measurement […]