Hello all, here you will find DFA's Market Summary for the second quarter of 2016. I don’t expect you to read the whole deck, but I always try to find a page or two to point out to you, typically it’s the last page, but this time around I honestly couldn’t think of much to say about the last page; instead you should check out page 4.

The quarterly reports always contain this page (which highlight global events against the backdrop of the performance of the MSCI All Country World Index), but I think this time it’s notable for the “Brexit” event we saw less than 3 weeks ago. You’ll see how the market’s reaction was a very sharp move down (and don’t forget stock markets are just made up of people buying and selling stock to and from each other), but you’ll also see the drastic move back up [as I’m writing this email the US stock market as measured by the S&P 500 Index is at an all-time high], this is why it’s imperative we don’t react to ‘the sky is falling’ short-term news when we’re investing for the long-term. And as I always say if we’re investing heavily in stocks then by nature we’re investing for the long-term.

After the Brexit event on June 23, I had no idea if our stocks portfolios would continue to go down in value, stay flat, or sharply rise, but I did know I wasn’t going to panic and I wasn’t going to let one day of stock market movement derail a lifetime’s plan of stock investing for your or my portfolio.

We will be greatly rewarded if we always stay the course in a broadly diversified portfolio and as our appetite for risk/reward changes, then, at that time, is when we react and raise or lower our stock exposure. We decide when to raise or lower our stock exposure, we don’t let others in the market decide for us.

Please contact me with any questions.