In case you missed the recent NY Times column by Ben Stein, click the link below to get his take on what is needed to fix the economy. He asks, “Where Are the Grown-ups When You Need Them?”
The year 2006 was a good one for equity investors around the world as stock prices rose in 46 of the 50 countries whose equity market returns are reported by MSCI. Among these, only Israel, Jordan, Thailand, and Turkey saw their local stock market indexes slump for the year. Total return for US stocks was 15.32% according to MSCI, placing it next-to-last among 23 developed markets (in dollar terms) and 42nd out of 50 countries in all. There were 36 markets with a total return greater than 20% (in dollar terms), and 19 had a total return greater than 40%. Nine of the top ten were emerging markets.
Dimensional is rarely in the news, but they are becoming harder for the national media to avoid, as passive portfolios continue to beat the competition. Click here to read the Forbes top story “The Index Insurgents.”