Which Way are the Markets Heading?

Have you been wondering which way the markets are headed?  Does the rise in stock prices seem out of touch with economic news?  Two recent articles, one by Dimensional Fund Advisors (DFA) and another by Vanguard, attempt to explain why and how the markets are reacting to current events, and what we might expect going forward.  The Vanguard article also does a nice job explaining the difference between growth and value stocks and how they have performed over time.

Vanguard Perspective | September 2, 2020: Growth versus value: Will the tides change?

Dimensional Fund Advisors | Perspectives: Is the Stock Market Divorced from Reality?

At HFP, our portfolios do have a value tilt, but the size of the tilt was reduced last spring.  We strive to ensure that our portfolios participate no matter the market conditions and do not try to guess the direction of the markets.