Welcome to the Jungle that is the US equity market ! “Markets can remain irrational longer than you can remain solvent” said the great British Economist John Maynard Keynes. In wacky times such as now, the trick to keep calm when markets go crazy and carry on with the long-term goal in mind. Below are a …
Continue reading ‘Knowledge is Power: Bubble Spotting, Black Sea Facts, Trends Investing Edition’ »
The total number of people infected with Covid-19 is over 25.4 million as of Jan 26, 2021. The death toll has reached 425,208 according to data compiled by the NY Times. While a few months ago it seemed that there was no end in sight to this immense tragedy, it is now possible to imagine …
Continue reading ‘Could the US Go from Worst To First in Crushing Covid-19?’ »
The historical annual returns of the various sectors in the S&P 500 index shows the performance of the sectors during different economic cycles. For instance, last year the IT sector was the best performer with a total return of 44% as the pandemic forced millions of Americans to depend on technology working from homes. In …
Continue reading ‘S&P 500 Sector Annual Total Returns 2007 To 2020: Chart’ »
The number of years stocks go up is higher than the number of year they go down over the long run. This theory is true for the US equity market also. The number of years the S&P 500 has yielded a positive return much higher than the other way around. The following chart shows the …
Continue reading ‘The Pyramid Distribution of S&P 500 Total Returns 1825 To 2020: Chart’ »
Callan has published their popular The Callan Periodic Table of Investment Returns with 2020 data. The importance of diversification is vividly illustrated by this excellent chart published year after year. Last year US Small Caps were the top performers with a return of about 20%. US large caps yielded just over 18%. The adverse effects of …
Continue reading ‘The Callan Periodic Table of Investment Returns 2001 To 2020’ »