China used to be known as the “factory floor” of the world a few years ago as the country’s manufacturing industry was attractive to companies from the developed world due to cheap labor costs. However that is no longer the case. Wages in China have been steadily increasing making some manufacturers look for alternative cheaper …
Continue reading ‘Monthly Salary in Manufacturing Sector of Select Asian Countries’ »
Australian and US equity real total returns have tracked each other since the 1900 as shown in the chart below: Click to enlarge Source: Philo Capital
The performance of various asset classes vary in any given year. For example, bonds earned higher returns than stocks during the dark periods of Global Financial Crisis(GFC) in 2008 and 2009. Similar to the diversification benefits across countries, it is also important to diversify across many asset classes such as small caps, mid caps, large …
Interesting infographic on how climate change is affecting Europe. Click to enlarge Source: EEA
One of the easiest and simplest diversification strategies is to diversify across borders.Since the performance of equity markets varies across countries in any given year, an investor can boost their returns by spreading their assets across many countries. For example, emerging markets that are highly dependent on commodity exports perform well when commodity markets boom. …