The US stock market as measured by the S&P 500 Index has fallen for nine days in a row due to the uncertainty over US elections. According to a journal article this is the longest losing streak for the index since 1980. Market participants are griped by fears of Trump winning the race or launching a …
Continue reading ‘Performance Of US Stock Market After Heavy One Day Declines’ »
The US equity market as measured by S&P 500 is up by just over 2% year-to-date. Compared to this return, most developed European markets in the negative territory with the exception of UK’s FTSE 100 which is up by about 10% since many companies in the index derive most of their revenue from emerging markets which …
Continue reading ‘Blackrock: U.S. Stocks Are Expensive Compared to Foreign Stocks’ »
One of the best time to buy stocks is when markets are volatile. Currently global equity markets are extremely shaky due to uncertainty over the US elections and investors’ fear of the Republican candidate winning the White House. Those who are able to invest new cash in the markets should buy stocks as markets swing …
Continue reading ‘Keep Calm and Buy Stocks When Markets Are Volatile’ »
Global trade is very important for economic growth. So protectionist trade policies will lead to stunted growth or a recession. Increased global trade has tripled the share of trade in US national income in the past 50 years as shown in the graph below: Click to enlarge Source: November 2016 Trump – another Brexit moment?, The Absolute …
Continue reading ‘On The Relationship Between US Trade and GDP 1960-2015’ »
Stock markets in the US and the world generally tend to perform well in US election years Historical data analyzed by Schroders shows the S&P 500 rose in 9 out of the 11 election years. The MSCI World and FTSE All Share indices gained in eight of the 11 years. Chart – Average Performance of …