Tag: Nick Murray
We encourage investors to mostly look past annual returns and keep their eyes on the market’s long-term performance. But it can be helpful to consider annual reports too, as long as we do so within this greater perspective.
Speaking of perspective, there’s also global versus domestic viewpoints. The Dimensional Fund Advisors chart below, ranking 2017 return sources, illustrates why we continue to believe it’s best to globally diversify your risks and expected returns around the world. While the U.S. S&P 500 performed nicely in 2017, returning just under 22 percent, notice how many international markets did even better, with emerging markets significantly outpacing all the rest.
Of course, from one year to the next, the reverse can easily be true. So, to quote Nick Murray, an industry thought leader:
“We will never own enough of any one idea to make a killing in it. We will never own enough of any one idea to risk being killed by it.”
This is what diversification is for.
We can’t — and won’t try to — tell you what 2017 has in store for investors. But we can tell you that our approach to managing whatever does unfold remains the same. Here are a couple of inspirational quotes from other respected voices who share our perspective about the road ahead.
From Financial Author & Coach Nick Murray …
“The nature of successful investing, as we see it, is the practice of rationality under uncertainty. We’ll never have all the information we want, in terms of what’s about to happen, because we invest in and for an essentially unknowable future. Therefore we are dedicated to the principles of long-term investing that have most reliably yielded favorable long-term results over time: planning; a rational optimism based on experience; patience and discipline. These will continue to be the fundamental building blocks of our investment advice in 2017 and beyond.”
From Dimensional Fund Advisors’ paper, “Prediction Season” …
“In the end, the only certain prediction about markets is that the future will remain full of uncertainty. History has shown us, however, that through this uncertainty, markets have rewarded long-term investors who are able to stay the course.”