Category: Philosophy
Government Intervention and Stock Returns
Should equity investors be alarmed by the prospect of greater government intervention in the US economy? Weston Wellington of Dimensional Fund Advisors looks at examples of US intervention in the past and examines the record of stock returns around the world over the last thirty-nine years. The evidence suggests that government intervention is just one factor among many affecting stock returns, and that an above-average degree of intervention is not necessarily associated with below-average returns.