Government Intervention and Stock Returns

Posted Sunday, February 7th, 2010 at 5:09 am

Weston J. Wellington, Vice President, Dimensional Fund Advisors

Should equity investors be alarmed by the prospect of greater government intervention in the US economy? Weston Wellington 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.

Click here to view the presentation.