This month, we share thoughts from David Booth, Executive Chairman and Founder of Dimensional Fund Advisors. David speaks to lessons learned from the past 12 months in the market and how best to prepare for the future.
One month into 2021 and we already have online message boards and first-time investors attempting to take down hedge funds. Although many articles have been written about what happened in January, we thought it was a great opportunity to discuss how we view the recent events.
2020 was a year investors will not soon forget. A pandemic, a recession, the end of a more than decade-long bull market (and the beginning of another bull market), all-time highs for US stock indices, lockdowns & working remotely, a tense U.S. presidential election cycle, unemployment spiking more than 10 percentage points in a matter of months—the list could go on for some time. And after all of it, an above average calendar year return for U.S. stocks.
As soon as this weekend, the Food and Drug Administration is set to grant emergency approval to greenlight a COVID-19 vaccine from Pfizer and BioNTech. Within hours of the approval, millions of doses of the vaccine will be ready for distribution as each state determines who gets priority. Although initial doses will be available for those that the states deem to be most at risk, the majority of the US population will likely need to wait until the spring or summer of next year before getting the vaccine.