Still stuck trying to outguess the market? Deciding what to buy, when to get in, and when to get out can get expensive quickly. It’s also a losing game for the regular investor. But, what about the pros? Are they consistently outperforming?
Every year, Dimensional compares the long-term performance of US-based mutual funds. This 2-min video breaks down the results. It turns out fewer professional fund managers outperform their benchmark than would be expected through luck alone. The takeaway: Being a better market guru than the gal next to you is not a way to reliably, repeatably win.
We often ask prospective clients if they are clear on their fees, returns, and allocation. Most are fuzzy on the answers. In our world, we value transparency and keep a close eye on fees, exerting pressure where there is room for a reduction. We are pleased to share that Dimensional Funds just announced meaningful reductions in management fees for the equity funds we invest in for our clients and ourselves. The majority of our clients will experience 20% lower fees on the equity portion of their Dimensional investments. We’ll be sharing the details in future client meetings, but for now, know that the odds of long term success just got better!
Sometimes we run out of time and space to highlight everything we’ve loved reading in the last month. Based on the talk in the office, the following items deserve your attention, even if they didn’t get their own dedicated post.
- The Randomness of Global Equity Returns – We love this piece by Dimensional and you will too.
- Meet the Money Whisperer to the NBA Elite – We enjoyed this NYT profile.
- 6 St. Louis Dads Highlighted in St. Louis Magazine and you’ll know one of them.
- Our friend John Jennings nails it with this interesting fact of the day.
- Podcast Love from St. Louis Magazine