Why Portfolio Diversification Is Important

Diversification in a portfolio is an important strategy for long-term success. A well-built portfolio should not be concentrated heavily on a single stock or asset class or sector. Rather a portfolio should hold various assets such as growth stocks, dividend stocks, domestic stocks, foreign stocks, commodities, ETFs, closed-end funds, bonds, etc. Holding a diversified group …

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Emerging and Frontier Markets vs. Rest of the World

Emerging and Frontier markets are relatively big in terms of factors such as population, land, total number of listed companies, etc. However based on market capitalization of equity markets they account for less than 50% of the global total market capitalization. This is because equities in these markets permanently trade at a discount to equities …

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Dividend Withholding Tax Rates By Country 2016

*** UPDATE:  For the latest Dividend Withholding Tax Rates click : Dividend Withholding Tax Rates By Country 2017 When investing in overseas stocks investors have to pay withholding taxes on dividends paid out by a foreign company. Usually this tax is held by the country when dividends are sent out to non-resident investors. US investors can lose a …

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Duration of Bull and Bear Markets in Indian Stock Market

S&P BSE Sensex Index, the benchmark of India’s equity market is down 4.5% year-to-date. Though the index closed at 24, 952 on Friday,  in February it went below 23,000. During February, the Sensex was in a bear market having fallen over 23% from the previous peak reached in March 2015. Last month the index fell over 800 points …

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What is the Impact of Quantitative Easing on Savers?

Quantitative Easing (QE) programs have been implemented by central banks of many developed countries since the Global Finance Crisis(GFC) of 2008-2009. In simple terms, the programs eases the short-term interest rate to zero or close to zero. In the US, this rate known as the Fed Funds Rate, has remained at or near zero since the …

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