As we look at where stocks have gone this year, should we worry about the long-term? David Booth, co-founder of Dimensional Fund Advisors shares his thoughts.
The Impact of Inflation
When we think about risk, what’s more important? Do we seek the relative protection of bonds knowing that they are likely to perform better in a market downturn? Or do we concern ourselves with the longer-term impact of inflation and invest in ways that preserve the purchasing power of our assets?
Investing is often about trading short-term risk against long-term goals. Striking the right balance between the two can make a big difference when it comes to reaching our destination. Our latest article, The Impact of Inflation, touches on this issue and helps point us in the right direction.