Global equity markets advanced in December with a 2.25% aggregate return. Developed (ex US) markets (+3.23%) outperformed US markets (+1.96%) and Emerging markets (+0.35%).

In the US, small cap (+2.52%) outperformed large cap (+2.19%) and mid cap (+0.93%). Among price‐to‐book asset classes, value (+3.93%) beat neutral (+1.11%) and growth (+0.83%). Telecommunication Services (+8.11%) posted the largest return and Financials (+4.22%) made the largest contribution. Materials (‐0.65%) fell the most and was the largest detractor for the month.

In the Bond Market, Good Things Come to Those Who Wait

Last week the Federal Reserve met and decided to raise short-term interest rates by 25 basis points. This move was expected. We now know that rates will continue to rise incrementally at a higher rate than was initially expected. While this may have a negative impact on bonds in the short-term, higher rates over time allows for reinvestment at those higher rates and better returns.

Factor-Based Investing and the benefits of working with a DFA affiliated financial advisor

For years it has been assumed that you have to be either an active or passive investor. It is also assumed (depending on which camp you’re in) that one is better than the other. In my opinion, the argument over active vs passive management can be put squarely to bed--And the answer to which investing strategy I use is...Both. This is called factor based investing and it is a strategy used by a company whose funds I use a great deal---Dimensional Fund Advisors (DFA).

Financial Titans Volcker and Petersen say “tisk tisk” to the American people and call upon our president-elect to make tough choices shift the dangerous trajectory of our national debt.

We now know that Donald Trump has won the presidency and whether you voted for him or not, this broken system has been passed down to him and it is therefore, on him to make moves to fix it. The rising national debt has been a problem for a long time, and the lack of attention it is paid is why we are where we are today. “There is still time to solve this problem. But our next president needs to show leadership in the first months”ⁱ no matter how unpopular it is.