Foundational Financial Life Planning

Curious about how markets work? This video explains how security prices are set and how they change based on the collective knowledge of buyers and sellers. Armed with this information, investors will better understand how and why markets work.

In this Dimensional Story, Nobel laureate Bob Merton relays his childhood love of magic shows. He relates the illusion behind magic shows to investing and explains how investors can avoid a lot of trouble by accepting that if it looks too good to be true, it’s probably not true.