“You cannot predict what the market is going to do. Your investment experience must be built on expected outcomes and formed around things that you can control.”
Our host Joey Loss is joined by Skylar Liang from Dimensional Fund Advisors to discuss best practices for investing success in the long-term.
“So little of the market’s behavior is in our control. The only thing that is in our control is our behavior towards the market.”
They dive into the merits of diversification and maintaining a big-picture perspective amidst the changing tides of the market, especially with the ever-evolving geopolitics we’re currently facing, as well as the recent explosion of new retail investors.
“When it comes to investing, you need uncertainty. Without uncertainty, you might as well own cash and bonds. There would be no premium for being in stocks.”
Joey and Skylar also explore Dimensional's evolution from its institutional beginnings in the 1980s to becoming a key partner to today’s financial advisors. Skylar shares insights into the company's “backend” strategies, distinguishing them from traditional index funds by emphasizing cost reduction and optimized returns. She discusses the importance of balancing strategic investment approaches with flexibility, avoiding headlines, and being married to only one or two stocks.
Key Topics:
- About Skylar Liang and Dimensional Fund Advisors (00:00)
- Defining “Value Investing” (03:32)
- Dimensional’s Outlook on the Market (09:33)
- The Valuation Equation (12:30)
- Controlling Your Behavior Towards the Market (18:00)
- Why Uncertainty is a Good Thing (23:37)
- The Value of Financial Planners (27:40)
- Dimensional’s Foray Into the Advisor Space (29:01)
- Dimensional’s ETF Lineup (33:43)
- Considerations Around Index Funds (34:42)
Resources:
This podcast is brought to you by Joey Loss, CFP®, Adam Van Wie, CFP®, and Strivus Wealth Partners. Through Strivus, Joey and Adam provide financial planning and investment management services to clients across the country from their home base in Jacksonville Beach, Florida.
You can find show notes and transcript of the conversations here: Strivus Wealth - Wealth Unplugged.
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