Why Market Timing Does Not Work: A UK Example

One of the topics that I have written many times on this blog is the concept of Market Timing. This strategy involves selling at market peaks and buying at market lows. While this sounds pretty simple, obviously it is impossible to execute for any investor. If it was so easy to do, then everyone will …

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39% of U.S. Stocks Are Losers Over The Long-Term

Investing in equities is a great way to build wealth over the long-term. Equity markets have created many millionaires and billionaires. However it is important to note that not all stocks are wealth creators in the long-term. According to a study by ValueWalk in 2015, 39% of U.S. stocks were money losers over their lifetime. …

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Total Return vs. Price Return Chart for the Dow and SP 500: Chart

Investors invest for the long-term and traders trade for short-term gains. The distinction is important when it comes to success in investing. Since most retail investor invest in equities to meet a long-term goal such as a retirement it is important to focus on total returns of an index as opposed to price returns when …

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Which Sectors Perform Well Over The Long-Term In Emerging Markets?

Many emerging market (EM) investors consider commodities and energy as the best sectors to invest in those markets. This seem logical since many emerging markets are commodity based economies especially materials and oil. For example, Russia is a major oil exporter while Brazil is major exporter of natural resources and agricultural products. While investing in emerging …

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Which Sectors Are Most Likely To Benefit From US Tax Reforms?

In a post earlier today, I wrote about the proposed reduction in US corporate tax rate by the current administration. Should the rates decline substantially which sectors will be the biggest beneficiaries?. One of the misconception among investors is that the tech sector will be a big winner of a lower tax rate since they …

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Goldman: European Stocks May Outperform US Stocks This Year

European stocks are projected to beat US stocks this year, according to an article in Bloomberg yesterday quoting Goldman Sachs. From the article: European equities will catch up to their U.S. peers once the uncertainty surrounding near-term elections is lifted, according to Goldman Sachs Group Inc. The Stoxx Europe 600 Index will return 8 percent …

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