The historical P/E ratio of the S&P 500 1926 to 2009 is shown below: Click to enlarge The Price to Earnings (P/E) ratio was at 10.22 in the beginning of 1926 and reached 20.61 in 2009—an average increase of 0.84% per year. The highest P/E ratio was 136.50, recorded during the bull market in 1932, …
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The chart below shows the Dividend Yield and Dividend Payout Ratio of the S&P 500 index 1926 to 2000: Click to enlarge The Dividend Yield dropped from 5.15% at the beginning of 1926 to just 1.10% at the end of 2000. The Dividend Payout Ratio was at 46.68% the beginning of 1926 but decreased to …
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In the past few weeks the U.S. media hype into the Facebook IPO went into overdrive.Investors were bombarded with every little bit of information about the company and its young and now wealthy founders.Only Wall Street bankers, company founders, venture capitalists and other investors who acquired shares in the secondary market will make money while …
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Equity investors often wonder if stocks are better performers than bonds. This question takes on higher importance especially during times of high volatility in equity markets or when the return on equities is negligible or negative. For the decade ending in 2010, U.S. stocks were basically flat as measured by the S&P 500 while bonds …
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Chile has one of the top growing economies in Latin America. Though the country’s economy is primarily dependent on exports of commodities such as copper the composition of the GDP is slowly changing. Today though mining is the major industry in Chile, financial services account for about 16% of the GDP according to a Doing …