Equity market returns after bear markets are positive and sometimes the rebound is higher than the percentage of decline. So investors with a long-term horizon can take advantage of lower stock prices when markets are in a downward trend. The following graphic shows the cumulative equity returns once the bear market ends: Click to enlarge …
Continue reading ‘Bear Markets Are Always Followed By Positive Returns’ »
U.S. equities fared very poorly in the lost decade with the nominal S&P 500 stock price down 20% for the decade excluding dividends. The graphic below shows the performance of the S&P 500 index by decades: Click to enlarge Source: A lost decade for stocks. Will next one be better?, Christian Science Monitor While U.S. …
Continue reading ‘Chart: Fixed Income Sector Returns from 2001 to 2010’ »
One of the indices offered by the index provider Russell Investments is the The Russell Australia High Dividend Index. This index is comprised of diversified Australian blue chips that pay high dividends. The average market cap of companies in the index is over $34 billion and the dividend yield of the index is 5.72%. Financials …
Continue reading ‘Review: Russell Australia High Dividend Index’ »
Equity markets fall and rise for a multitude of reasons that no one can predict. So investors should not try to time the market moves. This is especially important for ordinary investors. Sophisticated professional investors such as hedge funds and other traders are able to reap fantastic profits from taking advantage of volatility in the …
Continue reading ‘Ordinary Investors Should Not Try To Time The Markets’ »