The Futility of Savings When Interest Rates Are Low

Albert Einstein once said “Compound interest is the eighth wonder of the world. He who understands it, earns it … he who doesn’t … pays it.” Compounding simply implies earning interest on interest to multiply one’s cash savings. The power of compounding works well only when the interest rate offered on a savings account is decent. …

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On The Issue Of Home Bias Of Stock Market Investors

One of the factors that affects investors in the construction of a equity portfolio is the issue of home bias. Because of this issue investors to tend to avoid investing in foreign stocks. An investor building a globally diversified portfolio must allocate assets based on the market-cap weighting of each country in a broad global …

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Household Savings Rate: U.S. vs. Australia

The savings rate in Australia is much higher than the U.S. rate. In the U.S., the Personal Saving Rate stood at just 6.0% as of October, 2016. This rate is the same as the household savings rate in Australia. Click to enlarge U.S. Personal Saving Rate: Source: Federal Reserve of St.Louis In the 60s and 70s, …

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GDP Per Capita: Emerging vs. Developed Markets

Emerging markets such Brazil, China, India, Russia,etc. have had overall strong economic growth in the past few decades.However despite the tremendous increase in the standard of living in these and other emerging countries, the GDP per Capita is still far lower than those of developed countries. Click to enlarge Source: Emerging-Market Equity 2017 Outlook, Franklin Templeton Investments …

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Knowledge is Power: Canadian Charts, American Tragedy ?, New Dividend Strategy Edition

75 charts every Canadian should watch in 2017 (MaClean’s) The 10 best and worst performing stock markets of 2016 (Money Observer) Canadian stocks poised to accelerate should U.S. growth gain speed (Financial Post) Is America about to collapse? Here are some reasons it’s a genuine tragedy (News Ltd.) The experts’ view on European equities in 2017 (FE Trustnet) …

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