{"id":10884,"date":"2022-12-11T04:21:49","date_gmt":"2022-12-11T04:21:49","guid":{"rendered":"https:\/\/ferofinancial.com\/?p=10884"},"modified":"2023-02-23T17:33:14","modified_gmt":"2023-02-23T17:33:14","slug":"tuning-out-the-noise","status":"publish","type":"post","link":"https:\/\/advisors1.bradcable.com\/ferofinancial\/tuning-out-the-noise\/","title":{"rendered":"Tuning Out the Noise"},"content":{"rendered":"

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For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets. Being bombarded with data and headlines presented as affecting your financial well-being can evoke strong emotional responses from even the most experienced investors. Headlines from the so-called lost decade\u2013the 2000s, when the S&P 500 ended below where it began\u2013can help illustrate several periods that may have led market participants to question their approach.<\/p>\n

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  • March 2000:<\/strong>
    \nNasdaq Stock Exchange Index Reaches an All\u2011Time High of 5048<\/li>\n<\/ul>\n
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    • April 2000:<\/strong>
      \nIn Less Than a Month, Nearly a Trillion Dollars of Stock Value Evaporates<\/li>\n<\/ul>\n
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      • October 2002:<\/strong>
        \nNasdaq Hits a Bear-Market Low of 1114<\/li>\n<\/ul>\n
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        • September 2005:<\/strong>
          \nHome Prices Post Record Gains<\/li>\n<\/ul>\n
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          • September 2008:<\/strong>
            \nLehman Files for Bankruptcy, Merrill Is Sold<\/li>\n<\/ul>\n

            While these events are more than a decade behind us, they can still serve as an important reminder for investors. For many, feelings of elation or despair can accompany headlines like these. We should remember that markets can be volatile and recognize that, in the moment, doing nothing may feel paralyzing. However, if one had hypothetically invested $10,000 in US stocks in January 2000 and stayed invested, that would be worth approximately $38,400 at the end of 2020.1<\/sup><\/p>\n

            When faced with short-term noise, it is easy to lose sight of the potential long-term benefits of staying invested. While no one has a crystal ball, adopting a long-term perspective can help change how investors view market volatility and help them look beyond the headlines.<\/p>\n<\/div>\n<\/div>\n

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            EXHIBIT 1<\/span><\/p>\n

            Hypothetical Growth of Wealth in the S&P 500 Index<\/p>\n

            January 1, 2000\u2013December 31, 2020<\/h5>\n
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            \"Hypothetical<\/div>\n<\/div>\n<\/div>\n
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            The Value of a Trusted Advisor<\/h2>\n
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            Part of being able to avoid giving in to emotion during periods of uncertainty is having an appropriate asset allocation that is aligned with an investor\u2019s willingness and ability to bear risk. It also helps to remember that if returns were guaranteed, you would not expect to earn a premium. Creating a portfolio investors are comfortable with, understanding that uncertainty is a part of investing, and sticking to a plan may ultimately\u00a0lead to a better investment experience.<\/p>\n

            However, as with many aspects of life, we can all benefit from a bit of help in reaching our goals. The best athletes in the world work closely with\u00a0a coach to increase their odds of winning, and many successful professionals rely on the assistance of a mentor or career coach to help them manage the obstacles that arise during a career. Why? They understand that the wisdom of an experienced professional, combined with the discipline to forge ahead during challenging times, can keep them on the right track. The right financial advisor can play this vital role for an investor. A financial advisor can provide the expertise, perspective, and encouragement to keep you focused on your destination and in your seat when it matters most. A survey conducted by Dimensional Fund Advisors found that, along with progress towards their goals, investors place a high value on the sense of security they receive from their relationship with a financial advisor, as\u00a0Exhibit 2<\/strong>\u00a0shows.<\/p>\n

            Having a strong relationship with an advisor can help you be better prepared to live your life through the ups and downs of the market. That\u2019s the value of discipline, perspective, and calm. That\u2019s the difference the right financial advisor makes.<\/p>\n<\/div>\n<\/div>\n

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            EXHIBIT 2<\/span><\/p>\n

            How Do You Primarily Measure the Value Received from Your Advisor?<\/p>\n

            Top Four Responses<\/h5>\n
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            \"How<\/div>\n<\/div>\n<\/div>\n
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            FOOTNOTES<\/p>\n

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            1. \n
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              1<\/sup>As measured by the S&P 500 Index. A hypothetical portfolio of $10,000 invested on January 1, 2000, and tracking the S&P 500 Index, would have grown to $38,387 on December 31, 2020. However, performance of a hypothetical investment does not reflect transaction costs, taxes, or returns that any investor actually attained and may not reflect the true costs, including management fees, of an actual portfolio. Changes in any assumption may have a material impact on the hypothetical returns presented. It is not possible to invest directly in an index.<\/p>\n<\/div>\n<\/li>\n<\/ol>\n

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              DISCLOSURES<\/p>\n

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              Figures are in USD.<\/p>\n<\/div>\n<\/div>\n

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              Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.<\/p>\n<\/div>\n<\/div>\n

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              There is no guarantee investment strategies will be successful. Investing involves risks including possible loss of principal. Investors should talk to their financial advisor prior to making any investment decision. There is always the risk that an investor may lose money. A long-term investment approach cannot guarantee a profit.<\/p>\n<\/div>\n<\/div>\n

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              All expressions of opinion are subject to change. This article is distributed for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services. Investors should talk to their financial advisor prior to making any investment decision.<\/p>\n<\/div>\n<\/div>\n

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              \n

              \u201cDimensional\u201d refers to the Dimensional separate but affiliated entities generally, rather than to one particular entity. These entities are Dimensional Fund Advisors LP, Dimensional Fund Advisors Ltd., Dimensional Ireland Limited, DFA Australia Limited, Dimensional Fund Advisors Canada ULC, Dimensional Fund Advisors Pte. Ltd., Dimensional Japan Ltd., and Dimensional Hong Kong Limited. Dimensional Hong Kong Limited is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.<\/p>\n<\/div>\n<\/div>\n

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              UNITED STATES:\u00a0<\/strong>Dimensional Fund Advisors LP is an investment advisor registered with the Securities and Exchange Commission.<\/p>\n<\/div>\n<\/div>\n

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              Investment products: \u2022 Not FDIC Insured \u2022 Not Bank Guaranteed \u2022 May Lose Value
              \nDimensional Fund Advisors does not have any bank affiliates.<\/p>\n<\/div>\n<\/div>\n

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              Dimensional Fund Advisors does not have any bank affiliates.<\/p>\n<\/div>\n<\/div>\n

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              AUSTRALIA:\u00a0<\/strong>This material is issued by DFA Australia Limited (AFS License No. 238093, ABN 46 065 937 671). This material is provided for information only. No account has been taken of the objectives, financial situation or needs of any particular person. Accordingly, to the extent this material constitutes general financial product advice, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor\u2019s objectives, financial situation and needs. Investors should also consider the Product Disclosure Statement (PDS) and the target market determination (TMD) that has been made for each financial product either issued or distributed by DFA Australia Limited prior to acquiring or continuing to hold any investment. Go to\u00a0\u00a0to access a copy of the PDS or the relevant TMD. Any opinions expressed in this material reflect our judgement at the date of publication and are subject to change.<\/p>\n

              NEW ZEALAND:\u00a0<\/strong>This material is issued by DFA Australia Limited (incorporated in Australia, AFS License No. 238093, ABN 46 065 937 671). This material is provided for information only. This material does not give any recommendation or opinion to acquire any financial product or any financial advice product, and is not financial advice to you or any other person. No account has been taken of the objectives, financial situation or needs of any particular person. Accordingly, investors should, before acting on the advice, consider the appropriateness of the advice, having regard to the investor\u2019s objectives, financial situation and needs. Investors should also consider the Product Disclosure Statement (PDS) and for the Dimensional Wholesale Trusts the target market determination (TMD) that has been made for each financial product or financial advice product either issued or distributed by DFA Australia Limited prior to acquiring or continuing to hold any investment. Go to\u00a0\u00a0to access a copy of the PDS or the relevant TMD. Any opinions expressed in this material reflect our judgement at the date of publication and are subject to change.<\/p>\n<\/div>\n<\/div>\n

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              \n

              Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio.<\/p>\n<\/div>\n<\/div>\n

              \n
              \n

              There is no guarantee investment strategies will be successful. Investing involves risks including possible loss of principal. Investors should talk to their financial advisor prior to making any investment decision. There is always the risk that an investor may lose money. A long-term investment approach cannot guarantee a profit.<\/p>\n<\/div>\n<\/div>\n

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              SINGAPORE<\/strong>
              \nThis material is deemed to be issued by Dimensional Fund Advisors Pte. Ltd., which is regulated by the Monetary Authority of Singapore and holds a capital markets services license for fund management.<\/p>\n

              This advertisement has not been reviewed by the Monetary Authority of Singapore.<\/strong>\u00a0This information should not be considered investment advice or an offer of any security for sale. All information is given in good faith without any warranty and is not intended to provide professional, investment, or any other type of advice or recommendation and does not take into account the particular investment objectives, financial situation, or needs of individual recipients. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice. Dimensional Fund Advisors Pte. Ltd. does not accept any responsibility and cannot be held liable for any person\u2019s use of or reliance on the information and opinions contained herein. Neither Dimensional Fund Advisors Pte. Ltd. nor its\u00a0affiliates shall be responsible or held responsible for any content prepared by financial advisors.<\/p>\n<\/div>\n<\/div>\n

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              FOR PROFESSIONAL INVESTORS IN HONG KONG.<\/strong>
              \nThis material is deemed to be issued by Dimensional Hong Kong Limited (CE No. BJE760) (\u201cDimensional Hong Kong\u201d), which is licensed by the Securities and Futures Commission to conduct Type 1 (dealing in securities) regulated activities only and does not provide asset management services.<\/p>\n

              This material should only be provided to \u201cprofessional investors\u201d (as defined in the Securities and Futures Ordinance [Chapter 571 of the Laws of Hong Kong] and its subsidiary legislation) and is not for use with the public.<\/strong>\u00a0This material is not directed to any person in any jurisdiction where (by reason of that person\u2019s nationality, residence, or otherwise) the publication or availability of this material are prohibited or which would subject Dimensional Hong Kong (including its affiliates) or any of Dimensional Hong Kong\u2019s products or services to any registration, licensing, or other such legal requirements within such jurisdiction or country. When provided to prospective investors, this material forms part of, and must be provided together with, applicable fund offering materials. This material must not be provided to prospective investors on a standalone basis. Before acting on any information in this material, you should consider whether it is suitable for your particular circumstances and, if appropriate, seek professional advice.<\/p>\n

              Unauthorized copying, reproducing, duplicating, or transmitting of this material are prohibited. This material and the distribution of this material are not intended to constitute and do not constitute an offer or an invitation to offer to the Hong Kong public to acquire, dispose of, subscribe for, or underwrite any securities, structured products, or related financial products or instruments nor investment advice thereto. Any opinions and views expressed herein are subject to change. Neither Dimensional Hong Kong nor its affiliates shall be responsible or held responsible for any content prepared by financial advisors. Financial advisors in Hong Kong shall not actively market the services of Dimensional Hong Kong or its affiliates to the Hong Kong public.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

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              For investors, it can be easy to feel overwhelmed by the relentless stream of news about markets.<\/p>\n","protected":false},"author":77,"featured_media":10885,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"