Asset Managers · Market outlooks

Forward rates: the unchallenged prophet

Dimensional Fund Advisors is based in Austin, Texas. Photo: Roy Niswanger via Flickr CC-BY-2.0.

Predicting future interest rates is a favorite activity among economists and strategists, but Dimensional Fund Advisors takes a unique stance. "Forward rates are the best guide when positioning bond portfolios for higher expected returns," they assert, dismissing the predictions of journalists and other ECB/Fed watchers.

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