DiNuzzo Wealth Management

06/30/2022

1️⃣ Reacting to down markets is a good way to derail progress made toward reaching your financial goals.

2️⃣ Over the past century, US stocks have averaged positive returns over one-year, three-year, and five-year periods following a steep decline.

3️⃣ One of the best ways to avoid succumbing to emotion at the expense of your portfolio is to partner with an advisor and make a plan.

Dimensional’s Marlena Lee shares three lessons that can help investors reach their financial goals during periods of volatility.

06/28/2022

Just two years removed from the last US recession, negative stock returns and aggressive US Federal Reserve interest rate hikes have many investors concerned we are headed for the big “R”—if we’re not already there.

But recessions are always identified with a lag. By the time one is called, the worst of its impact on markets has usually passed.

Investors may be concerned about another downturn in the economy, but by the time a recession is announced, the worst of its market impact has usually passed.

06/23/2022

What does a century of economic cycles teach investors about investing?

Our interactive exhibit examines how stocks have behaved during US economic downturns. Markets around the world have often rewarded investors even when economic activity has slowed.

This is an important lesson on the forward-looking nature of markets, highlighting how current market prices reflect market participants’ collective expectations for the future.

Since markets constantly react to economic expectations, stock returns can be positive even during a recession. This exhibit shows the power of markets through a century of US recessions.

06/21/2022

At some point over the past year, the financial media’s inflation coverage transitioned from, “Will this high inflation persist?” to, “Here’s how to cope with inflation that’s here to stay!”

It seems some investors have resigned themselves to a new normal of high inflation following decades of below-average consumer price changes.

However, financial market data tells a different story, one of potentially softening inflation.

Some investors may have resigned themselves to a new normal of high inflation, but financial market data may tell a different story.

06/16/2022

Many investors believe markets to be cyclical and search for signs of cycle status in an attempt to predict which investment styles are coming into and out of favor.

Rolling stock returns are like a Venus flytrap for these investors. Multiyear returns expressed over overlapping periods often appear cyclical, implying prior returns are useful indicators of future returns.

However, this is one cycle investors may want to avoid riding; rolling performance simply obscures the volatility in stock returns that is impeding predictability.

Multiyear returns over overlapping periods often appear cyclical, implying prior returns are useful indicators of future returns. It’s not true.

06/14/2022

As promised, Dimensional Fund Advisors updated their staple "Pursuing A Better Investment Experience".

1️⃣ Embrace Market Pricing
2️⃣ Don't Try To Outguess the Market
3️⃣ Resist Chasing Past Performance
4️⃣ Let Markets Work for You
5️⃣ Consider the Drivers of Return
6️⃣ Practice Smart Diversification
7️⃣ Avoid Market Timing
8️⃣ Manage Your Emotions
9️⃣ Look Beyond the Headlines
🔟 Focus on What You Can Control



https://lnkd.in/d-rHzUj

06/09/2022

Imagine it’s 25 years ago, 1997:

➡️ J.K. Rowling just published the first Harry Potter book.
➡️ General Motors is releasing the EV1, an electric car with a
range of 60 miles.
➡️ The internet is in its infancy, Y2K looms, and everyone is
worried about the Russian financial crisis.

A stranger offers to tell you what’s going to happen over the course of the next 25 years. Here’s the big question: Would you invest in the stock market knowing the following events were going to happen? And could you stay invested?

➡️Asian contagion
➡️Russian default
➡️Tech collapse
➡️9/11
➡️Stocks’ “lost decade”
➡️Great Recession
➡️Global pandemic
➡️Second Russian default

From January of 1997 to December of 2021, the US stock market returned, on average, 9.8% a year.

A dollar invested at the beginning of the period would be worth about $10.25 at the end of the period.

Don’t panic. Invest for the long term.

With long-term investing, you’re not trying to figure out which stocks are going to thrive and which aren't. You’re betting on human ingenuity to solve problems.

06/07/2022

In 2022, the biggest losers from 2021 continued to struggle while value names with higher profits delivered—again. Trying to pick a handful of winners from thousands of small cap companies is a recipe for disappointment. Instead, buying the small cap market minus the riffraff can improve expected returns while still allowing investors to maintain a well-diversified portfolio.

Without a crystal ball to name standout performers, history and valuation theory are our best guide.

The biggest losers in 2021 flunked the first quarter of 2022 as well. Investors would be better off buying the small cap market minus the bad apples.

05/27/2022

"And I'm proud to be an American, where at least I know I'm free. And I won't forget the men who died, who gave that right to me." -Lee Greenwood

We are humbled by the men and women who have died protecting our freedoms; honored to remember and celebrate their memories.

Happy Memorial Day!

05/26/2022

The Dimensional Fund Advisors 2022 Matrix Book is now available! This is always a fan favorite as each year it adds to the history of the markets.

The annual survey of investment performance draws on historical data to look beyond short-term market fluctuations and shed light on the dimensions that explain differences in returns.

Includes a feature essay on the dramatic changes the investment world has seen in recent years and how both investors and financial professionals are benefiting from new products and technology in this space.

Contact your Financial Wellness LifeCoach for your copy today.

05/25/2022

We want to include you in on congratulating our Founder and President, P. J. DiNuzzo on his #1 National Bestseller book and most recent success, "The DiNuzzo Middle-Market Family Office Breakthrough". P.J.'s book launched last week and achieved:

➡️ #1 National Bestseller Barnes & Noble Across All Genres!
➡️Wall Street Journal Bestseller List #5 in the Nation
➡️USA Today National Bestseller List
➡️Amazon #1 Non-Fiction Book
➡️Amazon/Kindle Top 30 Bestseller Across all Genres!

Since 1989, his vision has helped 1,000's of families and individuals financially enrich their lives through his development of a proprietary process that enables Middle-Market families to enjoy the fruits of their labor.

Additionally, P. J. has selflessly worked to guide aspiring colleagues to develop sophisticated processes for their individual firms.

As a firm, we are elated to share in P. J.'s successes and grateful to be included on this amazing journey, as we continue helping our clients Create...and Live...Your Best Life! each and every day.