Inequality as measured by the Gini coefficients is the highest in emerging countries. Among developed countries, the US has the highest inequality which is not surprising. Inequality is also rising in the US due to a variety of reasons including tax cuts for the wealthy, lower tax rates on capital gains over labor income, etc. …
Manufacturing is the largest sector of the German economy. More specifically, the auto manufacturing industry is the largest in Germany. As a result, the German stock market tend to follow the auto industry. The following chart shows how the German stock market is highly correlated to the auto industry: Click to enlarge Cumulative total return …
Continue reading ‘On The Correlation between German Stock Market and Auto Stock’ »
Tech stocks are hot again this year. The top flying stocks are up by double digits percentage points year-to-date. The bull market in this sector continues for the past few years. Seemingly endless growth and innovation are driving investors to pay sky-high premiums for the top tech market darlings such as the FAANGs. Some of …
Continue reading ‘Tech Stocks: Is It Really Different This Time?’ »
The following is a fascinating map showing the travel times from London to the rest of the world in 1881 produced by the Royal Geographical Society. In those days London was the center of the universe. Even in those days all of Europe was reachable within 10 days. The travel time from London to the east …
Continue reading ‘Travel Times from London to Rest of the World’ »
US equity markets tend to perform better when a democrat is president than a republican president. During republican administrations economy tend to be stagnant or have lackluster growth. During democrat presidents’ administrations the economy tends to grow leading to higher stock market returns. From an article in FT Alphaville quoting a recent working paper by Lubos Pastor and Pietro …
Continue reading ‘US Stock Markets Generate Higher Returns During Democrat Presidents’ »