The US equity market may end the year with a loss barring any Santa Claus rally or a miracle. So investors may be wondering if this is the start of a bear market. Bear market is usually defined as a decline of 20% or more. According to an article at Schwab, very few of corrections …
Continue reading ‘US Equity Market Corrections and Bear Markets Since 1974’ »
US markets are on track to end the year with negative returns. However over the long run, US equities have had more positive annual returns than negative returns. The following chart shows the Distribution of US Equity Returns from 1825 to 2017: Click to enlarge Note: The returns shown above are Total Returns ( i.e. price …
Continue reading ‘Pyramid Distribution of US Equity Returns 1825 to 2017’ »
Many of the major equity markets are in the negative territory year-to-date. The S&P 500 is down by 4.77% based on price alone. But more than half the stocks in the index are down by more than 20% according to a recent MarketWatch article. Similarly half of global stocks are represented in the MSCI World …
Continue reading ‘Half of Global Stocks and S&P 500 Stocks Are Now in a Bear Market’ »
Investing in dividend stocks is a popular strategy among many investors. Dividend stocks offer investors a decent dividend yield in addition to any potential gains from price appreciation. So investors tend to gain twice since not only they get paid dividends quarterly or yearly or twice yearly but also the price gains. Since dividends are …
Continue reading ‘Five Risks to Consider in Dividend Investing’ »
The S&P is down by 2.75% YTD. US bank stocks declined even more and are getting close to bear market territory. The crash in tech stocks especially the FAANGs is not surprising. Developed European markets are in the negative YTD as well with Germany’s DAX off by 16%. Among the Latin American markets, Mexico is …