The S&P 500 Index that is benchmark of US equities is a price index – meaning dividends are not included in the return calculations. Since this index is the most popular and reported by the media all the time, investors may use this index to compare their portfolio performance. This is not the correct way …
Continue reading ‘On The Difference In Returns Between S&P 500 Price and Total Return Index’ »
Debt levels have increased globally since the financial crisis of 2008-09. Both government and private debt have soared after the crisis. The following chart shows the Debt to GDP Ratio of select countries: Click to enlarge Source: The Absolute Return Letter June 2016, Absolute Return Partners Japan has the highest debt with the debt-to-GDP ratio well above …
European financials are under-performing so far this year. Banking stocks in particular have declined heavily due to a multitude of factors including fears of UK exiting from the EU. Unlike the swift recovery of US banks, European banks never full regained their glory since the peak of the global financial crisis. Years of poor returns …
Continue reading ‘Franklin Templeton: European Financials Are On Sale Now’ »
The Trans-Pacific Partnership (TPP) is a trade agreement among 12 Pacific Rim countries. Like other trade deals in the past, this new agreement aims eliminate hundreds of taxes and tariffs between member countries and make trade easier and efficient effectively benefiting all members. Click to enlarge The US will be the largest trade partner within …