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11 June, 2014

The Certainty Principle

Most investors like certainty, and complain that they would invest more if there were more certainty, and the direction of the market were clearer.  Jim Parker, Vice President at Dimensional Fjund Advisers, makes the point that there has never been, and can never be certainty about the future, and the only sensible approach is to trust the market that the current price is fair.

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