Thank You, Markets: Reasons for Investors to be Thankful in 2023 – Dimensional – 11.21.23

Summary:

Now On Demand

It’s that time of year to give thanks for all the wonderful things in life, and markets have provided investors at least a few reasons to be thankful. Join Dimensional Fund Advisors for this special Thanksgiving webcast as we dig into a feast of topics impacting investors across equity and fixed income markets in 2023.

• We are thankful for opportunities beyond US megacaps. While it’s always a good time for a well-diversified portfolio, the increasing concentration of US large caps and opportunities across global markets underscore their importance. They say diversification is the only free lunch in investing — and we’re gobbling it up.
• We are thankful for higher interest rates. In less than two years, the one-year US Treasury yield jumped from 0.40% to 5.4%.¹ While it’s reasonable to lament the impact on our bond portfolios from the rise in interest rates, Thanksgiving is also about having one eye toward the future, and higher rates may help going forward.
• We are thankful for flexibility. As information and markets around the globe change continuously every day, throughout the day, we are thankful for the ability to adapt. Like the waistband of pants on Thanksgiving, investment portfolios can also benefit from flexibility.
• We are thankful for global yield curves. Bond prices across global currencies are continuously changing – and changing relative to one another. A global approach to fixed income allows investors to adapt to yield curves and may have US investors saying to friends across the pond, “pass the gravy.”

Speakers:

Matt Lipps is an Investment Strategist and equity portfolio specialist within Dimensional’s Investment Solutions Group, which is responsible for supporting the effective communication of Dimensional’s investment approach and strategies to clients and prospective clients. Prior to joining Dimensional, Matt worked in leveraged finance at Zions Bank in Salt Lake City, Utah. He earned his MBA from the BYU Marriott School of Business and is a CFA^® charterholder.

Lacey Huebel is Dimensional’s Head of Responsible Investment, North America, as well as a Senior Portfolio Manager. She has been involved with the firm’s social and sustainable fixed income portfolios since their inception and manages a variety of fixed income strategies. Lacey frequently represents Dimensional on ESG matters with clients and at conferences. Previously, she managed fixed income reporting as part of Dimensional’s Investment Analytics and Data team.

Before joining Dimensional, Lacey was an analyst at PlanMember Financial Corporation. She is a CFA^® charterholder and has two master’s degrees—an MS in mathematics from Kansas State University and an MA in applied mathematics from the University of California, Santa Barbara. She earned her BS from Texas State University, San Marcos.

Courtney Scott is a Regional Director in Dimensional’s Global Client Group. She is an active part of the Virtual Strategy team, which is responsible for large-scale webcasts and virtual events to Dimensional clients globally. Courtney consults with the firm’s sales teams to execute their webcast strategy and conducts training so Dimensional speakers are prepared to effectively deliver content through video-enabled interactions. She is a frequent moderator on webcasts hosted from Dimensional Studios, where she facilitates discussions between clients and Dimensional speakers.