The Decade In Review

As we turn the page on the 2010s, our friends at Dimensional Fund Advisors have put together a short white paper reviewing the past ten years.

Looking back, there are many similarities between where we are now and where we were 10 years ago. Investors both then and now had reasons to worry about the future. In 2010, the markets were still recovering from 2008’s Financial Crisis with uncertainty surrounding the merits of investing in stocks. Often referred to as America’s “lost decade”, investors had a negative annualized return if they remained invested in US stocks throughout the 2000s*. Today, markets are reaching all-time highs, and headlines surrounding Brexit, China-US trade negotiations, monetary policy, and an upcoming US election could lead investors to feel the same apprehension they may have experienced ten years ago. What’s important to realize is that how you feel today should have no bearing on your long-term investment strategy as uncertainty will always be a constant. Rather, we suggest you focus on your specific financial goals and tolerance for experiencing volatility and losses. Regardless of the surprises the next decade may bring, we recommend remaining focused on staying disciplined to your long-term investment plan and avoiding letting emotions drive decision making.

Please click here to read more from Dimensional Fund Advisors.

 

There is no guarantee that any investment strategy, including those described here, will be successful. Any investment or investment strategy can lose money. Past performance does not guarantee or predict future results. You should not assume that any discussion or information contained herein serves as the receipt of, or as a substitute for, personalized investment advice from Raffa Wealth Management, LLC. This information was gathered from reliable sources, but we cannot guarantee accuracy. Indexes do not reflect the fees associated with actual investments and such fees would reduce the performance illustrated. Source: FMG Suite, LLC.
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