Many Investors believe that there may be a way to predict when to buy and sell securities.
Fama looks back on his career and the contrasting response he’s had to his work from the academic community and from Wall Street: Of course Fama is most famous for the Efficient Market Hypothesis. It’s not surprising that so many people who work in the industry take objection to the EMH. Think about it; if it’s true, which I believe it largely is, it means that the vast majority of investment professionals add no discernible value.
A remarkable 54-minute film featuring some of the world's top economists and academics and demonstrating:
- how the claims of active fund managers to be able to beat the market are largely a myth
- how costs are the biggest drag on performance - and why active costs more
- how passive investing offers the best experience for the vast majority of investors
- the benefits of a diversified portfolio in guaranteeing consistent returns
- why passive investing is better for your health
- why active investing has held sway for so many years....
- ... but why things may be changing
- and why passive is the rational, mathematically proven route to investing success.
Dave Twaradowki, PhD, examines the pricing advantage that investors can get from Dimensional’s patient and flexible approach to trading.
This series of five short videos discusses the vital role that advisors play in helping people pursue their financial and investment goals. In our first video, Dave Butler, Head of Global Financial Advisor Services with Dimensional, explains how financial advisors can help investors stay in the markets, using the market downturn in 2008 as an example.
More Articles ...
- The Value of Advice (Part II)
- The Value of Advice (Part III)
- The Value of Advice (Part IV)
- The Value of Advice (Part V)