The four phases of a valuation cycle are shown in the chart below: Click to enlarge Source: Global Investor 1.14 – Europe, August 2014, Credit Sussie According to this CS report published earlier this year, European stocks are in the “Optimism” cycle and should get to the “Reality” cycle soon as earnings and macroeconomic fundamentals improve.
On Monday we looked at some of the reasons for investing in Australian dividend stocks. High payout ratio is one of the main advantages of Australian stocks.However a report published by the Boston Consulting Group questioned if Australian firms are missing out on potential growth opportunities as they are focused too much on satisfying investors’ hunger …
Continue reading ‘Are Australian Companies Missing Out On Growth Opportunities?’ »
I came across this interesting chart on the long-term real returns of US stocks. According to this chart, currently we are in the aftermath phase of a secular bull market. Click to enlarge Source: Global Investor 1.14 – Europe, August 2014, Credit Sussie Over the very long long-term equities tend to go higher…..
European stocks have been laggards this years relative to the decent performance of U.S. stocks. However moving forward, European stocks have better growth potential compared to their American peers for a variety of reasons two of which are discussed in this post. 1. Currently U.S. stocks are expensive while European equities are relatively cheap based on …
Continue reading ‘Two Reasons On Why European Stocks Have Room To Grow’ »
The total assets of the U.S. Federal Reserve stood at over $4.0 Trillion at in December 2013. To be more exact, it reached a record high of $4,008,062,000,000. Click to enlarge Source: Fed’s assets top $4 trillion, CNN, Dec 19, 2013 It is not just the balance sheets of the Fed and the European Central Bank …
Continue reading ‘A Comparison Of The Assets Of Central Banks of Major Economies’ »