As we watch the Ukraine invasion unfold, we are saddened to think about all the lives that will be upended & lost from these acts of aggression. At a time like this, it is hard to find words to express our empathy for those impacted but for those that are, we hope that they find safety and the damage inflicted is limited as much as possible.

Given these events, market volatility has increased over the last few weeks, which is something we have all seen before. From our current vantage point, every past stock market decline has looked like an opportunity and all future declines look like risk. With investing, hindsight is always 20/20, but the future is completely unknown. Even given this fact, some investment firms would like you to believe they have the crystal ball to forecast returns. The reality is they are just filling a demand from investors who understandably want control over something that they have no control over. 

Contrary to this thinking, our investment philosophy is a simple one, invest for the long term. There will always be market volatility and there will always be another crisis. The truth is, without asset price volatility, investing would be easy. Everyone, young and old, would line up to invest their hard-earned cash with confidence that their money will grow into the future. But that’s not how it works, and there is a reason for that. Investing in the stock market takes work. The work to stomach the ups and downs, the work to tune out the noise that the media uses to try and grab your attention. The work to sit on your hands during times of uncertainty and to remember that from this vantage point, every past market decline has looked like an opportunity given hindsight. The work that you put in is the reason why markets historically pay, because without the volatility there would be little to no reward.

In light of these events, we wanted to share with you some insights from Dimensional Fund Advisors. Attached you will find an article that explains their process navigating past geopolitical events. In addition, we have two links below that will give you additional insight into the academic rationale to our investment philosophy. As always, we thank you for the trust you have in us and if you have any questions, please let us know!

Implications of Investor Behavior

David Booth on Forecasting