Life would be much easier if we could predict the future. But even with their collective knowledge and wisdom, investors as a group-the market-can't predict the future.

You can take comfort in knowing that you do have a reliable indicator of how risky a stock or bond holding is. Just check its price. Now studies by Marlena Lee, a research associate at Dimensional Fund Advisors (DFA), show that markets reliably price the chances that a country's GDP will grow.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access