David Booth, co-founder of Dimensional Fund Advisors, was interviewed on Squawk Box on CNBC yesterday, and had some interesting things to say on subjects ranging from the inverted yield curve to gun control.
Here are some of the highlights:
Market timing
“There’s no compelling evidence that anybody can systematically time (the market) right.”
The on-going bull market
“Markets have a tendency to go in one direction for a long time. You just don’t know how long.”
The inverted yield curve
“(Fama and French) have done an exhaustive study looking at all the inverted yield curves around the world and the conclusion is, it doesn’t mean anything for the future of stock returns.”
DFA and corporate responsibility
“As a person, not an investor, I can’t figure out why you need to have the ability to buy an AK47. In addition to running a company, we are citizens.”
You can watch the full interview here:
If you’re interested in the research that Gene Fama and Ken French have conducted on the inverted yield curve, you can find their recent paper here:
Inverted Yield Curves and Expected Stock Returns
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