David Booth urges investors to stay calm and keep money in the market

David Booth, a multi-billionaire and co-founder of Dimensional Fund Advisors, released a new book titled "Stay Calm: Learn to Embrace Uncertainty in Investing and Life" and discussed its themes in one outlet's interview. He urges investors to remain composed amid market swings and to keep their money invested, noting that index funds have delivered roughly 9% annual returns historically, while active managers often lag after fees.

Booth credits his education under Nobel-winning economist Eugene Fama at the University of Chicago for shaping his belief in efficient markets and passive investing. He highlights the importance of early investing for young people to harness compounding, and warns that exiting the market during dips forfeits potential gains. While acknowledging concerns about AI and job security, Booth maintains that optimism about stock and bond markets remains justified, and he calls for better financial education to help more Americans save for retirement.