So far, the stock market has created more questions than answers in 2016. In this week's Accountable Update I share three "Issue Briefs" from my friends at Dimensional Fund Advisors that address some of the concerns on investors' minds.
In the first Brief, titled Recent Market Volatility, DFA explores how or if returns in January provide indications about the rest of the year. They also compare the recent downturn to other periods of volatility for historical context.
In the second Brief, Crude Oil and Financial Markets, questions about the historical relationship between crude oil prices and stocks are discussed. They also provide some analysis of the cause and impact of the downturn in oil.
The last Brief, An Update on China, reviews the Chinese equity market and DFA's approach to investing there. They discuss recent events and some of the differences between shares traded on local Chinese exchanges versus shares traded in Hong Kong and other overseas markets.
I hope you find these Issue Briefs helpful in answering questions that may be on your mind. As always, if recent events are keeping you up at night or have you questioning your path, get in touch to review your situation.