From The Desk Of Charles J. Massimo, CEO, CJM Wealth Management, LLC.
Only DFA Funds Execute Market Dimensions Of Higher Expected Returns
Markets reflect the vast, complex network of information, expectations, and human behavior. These forces drive prices to fair value. This simple yet powerful view of market equilibrium has profound investment implications. Only DFA Funds are structured to provide strategies that perfectly reflect those equilibriums.
Markets throughout the world have a history of rewarding investors for the capital they supply. Companies compete with each other for investment capital, and millions of investors compete with each other to find the most attractive returns. This competition quickly drives prices to fair value, ensuring that no investor can expect greater returns without bearing greater risk. DFA Funds provide products that deliver that premium perfectly while protecting the investments by excluding the additional risks associated with the active money managers in the traditional Wall Street model.
Traditional, Wall Street, active managers strive to beat the market by taking advantage of pricing “mistakes” and attempting to predict the future. Tall too often, this proves costly and futile. Predictions go awry and managers miss the strong returns that markets provide by holding the wrong securities at the wrong time. Meanwhile, capital economies thrive–not because markets fail, but because they succeed. It is the most elegant and powerful investment philosophy available today. See the chart below, since 1970 our Global Equity Fund vs the S&P 500 and T-Bills.
In my long career in the markets I have seen only a few instances where the best in class stood in such stark contrast to the rest of their industry. Both CJM Wealth and DFA stand with that distinction in the investment/wealth management industry. I left the large Wall Street firms because they would not allow their clients, our clients, to benefit from these remarkable DFA Funds while they put their own personal fortunes in them. CJM Wealth was founded with a vision to bring this beautiful investment philosophy of Eugene Fama, Kenneth French and David Booth to the broader markets and evolve our nations individual and communal financial well-being to new levels of strength, wellness and independence.
Charles J. Massimo
CEO, CJM Wealth Management, LLC.