Post by Dimensional Fund Advisors

The financial market is made up of millions of participants, buyers and sellers who voluntarily agree to trade shares of companies all over the world. Millions of trades take place each day, totaling billions of dollars. The collective wisdom of all those participants is powerful—and it’s what sets market prices. Some investors try to outsmart markets, looking for mispriced stocks or bonds. This approach adds anxiety and unnecessary risk. Instead, harness the collective wisdom of all those millions of buyers and sellers for your portfolio and invest with a firm that will put the power of the market to work for you.