Eugene Fama, whose ideas and research, along with Kenneth French helped to form Dimensional Funds Advisors (DFA) has been annouced as the 2013 winner of the Nobel Prize in Economics.
He won based on the concept that he came up with decades ago and has gone about proving ever since “Stock prices reflect all available information.” Meaning that overall, it’s impossible to beat the market on a consistent, long-term basis. Eugene Fama, along with Professor French have identified seven risk factors that explain the vast majority of stock market returns.
This Prize comes after 40 years of proof that his theories were correct. Tune in to the Lange Money Hour on 1410 AM KQV tonight at 7:05pm EST (streaming live on www.kqv.com) to hear what PJ DiNuzzo, our DFA money manager has to say about this well-deserved and historic award.
(taken from press release from DIA, Inc.)
A partial government shutdown began today, leaving plenty of federal employees out of work and unpaid. National Parks are closed, FAA safety inspectors are out of work, NASA is all but closed, even The Smithsonian Museums are shut down. Many Americans worry during this time how the shutdown will effect them, their taxes, and the economy as a whole. @MacroScope Reuters tweeted an interesting chart this morning on the performance of the S&P 500 prior to, during, and after the previous government shutdowns.
While we could be facing a bumpy time during the shutdown and immediately after, it looks alike in most cases the S&P 500 didn’t fair so badly in shutdown situations. The shutdown is going to be an aggrevation, but there is no need to start panicking about investments. Contact your advisor before making any hasty buying/selling decisions during this time. An over-reaction could end up costing you!