The Informed Investor

Episode 36: Why all the hubbub about private credit? This unusual investment vehicle, which accounts for about 2% of the global fixed income market, seems to be all over the financial headlines. Some reports say investors are cashing out in droves. Others claim lending to troubled software firms catalyzed a meltdown that's chilling the entire private credit market. Then there are the optimists who...

Episode 35: What are the best reasons to invest in bonds? Maybe you're looking to dampen the volatility of your portfolio or address future spending needs in a concrete way. Maybe you want to reduce the impact of inflation or taxes. Bonds, also known as fixed income, can be used to meet a variety of needs. But different bond categories may be better or worse for accomplishing your goals. A crucial...

Episode 34: If you believe your portfolio is too concentrated in big-name companies, why not buy the same amount of every stock in a broad-market index? That's the basic philosophy behind equal-weighted strategies. Instead of letting market capitalization determine weights in your portfolio, just keep the proportions of your holdings the same by buying and selling as often as needed. This approach...

Episode 33: What if the biggest threat to your investment returns isn't picking the wrong stocks—but how you trade them? Many investors are drawn in by "free trading" and low expense ratios. But while your ETF or stock might be cheap—your trade might not be. Every time you go to market, you face explicit costs (like commissions and exchange fees) and implicit costs (like bid-ask spreads, market im...

Episode 32: Can you define BRICS or BATMMAAN? If not, maybe you've got FOMO? OK, we're talking investing acronyms. For the record: BRICS is a term coined in 2001 to represent investment opportunities in Brazil, Russia, India, and China. (South Africa was added in 2011.) BATMMAAN stands for the following tech companies: Broadcom, Apple, Tesla, Meta, Microsoft, Amazon, Alphabet, and NVIDIA. FOMO (fe...

Episode 31: You need to invest in emerging markets if you want a globally diversified portfolio, right? That may seem like an obvious choice considering emerging markets account for roughly 12% of the world's equity market capitalization. But it's easy to understand why many investors might say no to emerging markets. Uneven returns tell the story. From 2015 through 2024, the broad US stock market...

Episode 30: If a traditional investment portfolio with 60% stocks and 40% bonds has a down year, should you abandon this approach? Plenty of investors were probably asking that question in 2022, when the Russell 3000 Index plunged 19.2% and the Bloomberg US Aggregate Bond Index tumbled 13.0%. (Frank Russell Company is the source and owner of the trademarks, service marks, and copyrights related to...

Episode 29: What really drives the outcome of your investment portfolio—market performance or your own behavior? Investors often view returns as a purely quantitative result of markets, risk, timing, or expertise. Yet psychology tells a different story. Emotions and behavioral biases quietly shape decisions, frequently pushing investors away from their long-term goals. Any number of common biases...

Episode 28: Many stock market pundits are forecasting rewarding returns in 2026. Should you act on their predictions? On the other hand, should you get out of the market based on doom-and-gloom warnings about the US economy? It's tempting to think someone out there has a crystal ball. But it may be more worthwhile to consider the point of predictions. Forecasts for the stock market and the economy...

Episode 27: Do small capitalization stocks typically outperform in January? If so, can investors capitalize on that pattern? This trend is known as the January Effect. It's a popular idea because historical data show a sizable small cap premium versus large caps in January. Still, that's not a reason to avoid small cap stocks in other months, assuming you want to own them. Why not? Two reasons: (1...

Episode 26: Can anyone accurately predict when the stock market will hit a rough patch? Not likely. Although the market's long-term annualized return sits just above 10% and good years are more common than bad years, unexpected outcomes are not unusual. Which means holding a portfolio suitable for all market environments probably makes sense for most investors—as does conducting an investing "fire...

Episode 25: At the end of every calendar year, stock market pundits publish predictions for the coming 12 months. Should you pay attention to these forecasts? A look back at predictions for 2025 may help you decide. Some market pros argued that international stocks would struggle due to tensions around global trade and tariff policies. But that's not what happened. From January through the end of...

Episode 24: Why do the majority of ETF and mutual fund managers fail to outperform their benchmarks? The reasons are numerous but not always clear. As a result, many investors might believe they own winning funds that will continue to beat their benchmarks or the market at large. But they might be wrong, on both counts. Other investors might be painfully aware that their funds are underperforming...

Episode 23: Are there any connections between betting on sports and investing in stocks? Obviously, investing is not the same as placing a bet on your favorite team. For most people, after all, investing is usually a long-term endeavor. But you might be surprised to learn how the betting lines that drive wagering in sports are not unlike prices set by buyers and sellers in securities markets. Poin...

Episode 22: Regardless of which way the market is moving, do you feel thankful as an investor? That's easy when the market is rising, but it may be challenging if stock prices are falling. Worrying about your portfolio can be unnerving. At Dimensional, we hope everyone can have a rewarding investment experience. But our view is that great returns aren't the only thing worth celebrating. We're than...

Episode 21: What are the essential money moves for people over 50? By this point, many are beginning to prepare for retirement. Some may have built up significant wealth and gotten used to spending it after hitting their peak earning years. Others may be focused on preserving their wealth but feel unsure about whether they'll have enough for the decades ahead. "Lifestyle creep"—getting accustomed...

Episode 20: How should you manage your money from ages 18 to 50? When to start saving—and how much—are questions many adults begin to consider when they start their first job. Employer retirement programs, such as 401(k) plans, typically offer easy ways to save that come with tax advantages. Many employers will match a significant portion of contributions by employees to help them build their nest...

Episode 19: Is gold worth owning? Many investors are probably asking themselves that question after marveling at gold's recent returns. From January 1, 2024, through September 30, 2025, the metal's spot price soared more than 87%, doubling the performance of the S&P 500. Still, strong returns in the past don't tell us what's going to happen in the months and years ahead. So a decision to invest in...

Episode 18: Are you spooked by stock market headlines? When investors look back at market history, they'll find a grotesquely gory list of horrible headlines. "The Death of Equities" (1982), "Apocalypse Soon" (1993), and "The End Is Near" (2018) are just three examples. Several other hair-raising headlines probably had many investors hunting for monsters under the bed. But here's the thing: More o...

Episode 17: Are taxes hurting your investment returns? Investors holding mutual funds and exchange-traded funds (ETFs) in taxable accounts seek to capture high after-tax returns, not just rewarding pre-tax returns. But achieving that goal depends on how the funds are managed. Using efficient portfolio design and tax-smart implementation, some funds are able to limit capital gains and income distri...

Episode 16: Can you imagine another "Black Monday" in the stock market? On October 19, 1987, the S&P 500 plunged 20.5%, the biggest single-day drop in history. Panic selling occurred in markets around the world.   A new product from US investment firms, known as "portfolio insurance," had become popular and it accelerated the crash's pace as initial losses led to further rounds of selling, accordi...

Episode 15: Does technology help—or hurt—the workforce? Will AI take your job? Millions of Americans are no doubt wondering how artificial intelligence will alter their career trajectories. Some may fear they'll need to drastically shift gears because the job opportunities they thought would be plentiful may suddenly disappear. But the funny thing about technology, according to labor market expert...

Episode 14: Does cryptocurrency like bitcoin have a positive expected return—and, if so, why? Cryptocurrency is a digital or virtual currency that uses cryptography for security. Transactions are recorded on a decentralized network called a blockchain. Since 2010, when bitcoin started trading at a price of just pennies, the value of one coin has climbed past $100,000. Some investors may think the...

Episode 13: Can you take advantage of artificial intelligence (AI) in your portfolio? It's one of the most common investor questions regarding the rise of AI, a game-changing technology that seems to be affecting life in new ways almost every day. By now, most people are probably familiar with common AI tools like ChatGPT that rely on large language models, which are advanced systems that understa...

Episode 12: IPOs are hot again in 2025. Should you try to get in on the action? Initial public offerings (IPOs), particularly those involving well-known companies, often draw considerable attention from investors. Historically, while the most common path to enter public markets was through an IPO, entryways such special purpose acquisition companies (SPACs) and direct listings are drawing fresh at...