Dimensional's Q1 2026 market review — stocks slipped late in the quarter on geopolitical strain, international and emerging markets held up better than the US, and value and small caps started the year strong.
US small-cap and value stocks came out of the gate strong in 2026 after lagging in 2025 — a reminder of how fast factor premiums can turn, and how hard they are to time.
The size, value, and profitability premiums are reliable over long horizons — less so over short ones. A one-pager on how the odds improve with time.
The value premium is real but lumpy — it shows up in bursts. A one-pager on why discipline matters most when value has been out of favor.
Small-cap value can swing hard from worst to first. A one-pager on why a sharp turnaround rewards investors who stuck with the plan.
Over the long sweep of history, value has beaten growth more often than not. A one-pager on the long-term odds favoring value.