Dimensional Fund Advisor's view of the UK's EU Referendum Result
Dimensional Fund Advisors have sent a message to their business partners describing their view on the current uncertainty in investment markets. The article was quite technical but it can be summarised as below:
In their 35 years of experience of managing portfolios Dimensional are confident of the resilience of their investment philosophy in light of the referendum result. Dimensional are also satisfied that the various stock markets are functioning well.
They consider that an event such as the referendum should not affect one's investment decisions. There will be a recovery in the markets but it is difficult to know when this recovery will happen. By attempting to time the right moment to invest or sell, one risks not enjoying the potential benefits of a market recovery. Many of those who exit the markets miss the recoveries.
Dimensional note that they have often seen in the past is that investors who remained in well-diversified portfolios were rewarded over time.