How Dedicated Portfolios Reduce Behavioral Risk

May 12, 2020

The article reviews how portfolios based on dedicated portfolio theory were made for volatile times like these and tend to hold up much better than portfolios based on modern portfolio theory.  The recent market turmoil in both the stock and the bond market put clients’ financial plans under pressure, however we show how the Asset Dedication approach helps reduce some of the risks in ways that MPT and other approaches do not.

Bull and Bear Market

March 18, 2020

Asset Dedication’s team has put together slides showing the history of bull and bear market cycles starting from January 1925 through mid March 2020. It reveals that market declines are common, should be expected, and, in the long run, do not change the prospects of stocks relative to bonds.

2019 Markets In Review

March 18, 2020

2019 Markets In Review is a slide deck that shows the history of the Value, Small Company, and Emerging Markets factors. The focus is not actually on what happened in 2019, but on the pervasiveness of the factors over time. In addition, there is information on the direction of interest rates since 2000 and the impact of recent yield moves on the cost of building an Asset Dedication Income Portfolio.

Perspective on Recent Market Volatility

March 18, 2020

DFA’s Jake DeKinder, Head of Client Communications, and Mark Gochnour, Head of Global Client Services, discuss recent volatility in financial markets and provide perspective on these events. Of special note is how Dave Plecha, head of DFA’s bond department, talks about how individual bonds can protect against volatility (10:10).

Tuning Out the Noise

March 18, 2020

Taking an approach similar to Asset Dedication’s Bull and Bear Markets slide deck, DFA has produced “Tuning Out The Noise,” a short, client ready, .pdf and accompanying video focused on benefits of long term investing.

US Equity Returns Following Sharp Downturns

March 18, 2020

DFA’s research team developed a nice 1 pager showing the resilience of the US stock market following sharp downturns.