Time the Market at Your Peril

March 6, 2023 Author: David Booth, Chairman and Founder

Timing the market

The founder of Dimensional Fund Advisors, David Booth, warns that the rise of technology in investing, including ETFs and free platforms, may lead to increased risk of losses for investors. He advocates for an investment plan that doesn't focus on actively picking stocks or timing the market, and instead relies on a passive approach. He cites the growth of passive equity index funds and the high trade volume of the largest S&P 500 ETF as evidence that some investors are not following this advice. He believes that the financial services industry must better educate investors about the benefits of a passive approach and the need for a long-term investment plan.

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