One of the smart ways to diversify globally is to invest in multiple countries. With this approach it is possible to capture the top returns from one equity market and reduce the impact from a poor or worse returns from another market. Just like the return of various individual companies, the equity returns of individual …
Continue reading ‘The Best and Worst Developed Markets From 2001 To 2020: Chart’ »
The following chart shows the importance of diversification. There is no repeatable pattern from year over year. For instance, emerging market stocks were the best performers in 2017 with a return of over 37%. But the following year they were the worst performers with a negative return of over 14%. Click to enlarge Source: Russell …
I have written many time before on the futility of market timing. Since markets tend to go to extreme levels on both the upside and downside trying to get in and out at tops and bottoms will lead to worse outcomes. The wise strategy is to simply stay in the market regardless of volatility and …
Continue reading ‘On the Dangers of Market Timing: An Example’ »
One of the important points to remember about any major index is that the top stocks in the index change year over year. This is true for any market. In emerging markets it is even more relevant since leaders in emerging markets compete more aggressively and established players are more easily replaced by newer firms. …
Continue reading ‘The Top 10 Stocks in Emerging Markets 1990 to 2021’ »
The Andex Chart shows the performance of various asset classes for the Australian market over the long term. This powerful chart contains other fascinating details like annual returns, political leadership, etc. A $100 (Australian $) investment in 1950 would have grown to A$260,786 by 2021 or at about 11.7% per year. Some of the major …
Continue reading ‘The 2021 Andex Chart for Australian Investors’ »