The economic growth of a country and its equity market returns are not directly linked. Conventional wisdom would imply that higher economic growth leads to higher equity market returns and vice versa. But that is not always the case. In fact, the relationship between a country’s GDP growth and its equity market returns is weak …
Continue reading ‘Economic Growth vs. Stock Market Returns: China and India’ »
Merry Christmas to our readers. The following is a painting by Italian artist Mattia Preti who lived from 1613 to 1699. The painting is titled “The Nativity (Adoration of the Shepherds)”. Click to enlarge Credit: Mattia Preti Source: Liverpool Museums Have a Happy and Prosperous New Year too !
Canada’s benchmark S&P/TSX Composite Index is up by 7.12% on price return basis year-to-date as of December 21, 2023. The YTD total return, which includes reinvested dividends, is even better at 10.58%. The TSX Composite Index has generated an annual total average return of 7.51% over the past 100 years from 1920 to 2022 according …
Continue reading ‘Canada S&P/TSX Composite Index Annual Total Returns from 1920 to 2022: Chart’ »
Investing in equity markets involves risks. There are many types of risks and one of those is the risk of the unknown. Ideally investors would like to have a perfect world where there are no crises or unknowns so they can invest without having to deal with them. To put it another way, there are …
Continue reading ‘There Are Always Reasons NOT to Invest in Stock Market’ »
Investing in equities and bonds is one of the best ways to grow wealth. This is especially true when it comes to long-term. Over many years or decades due to the effect of compounding stocks have historically generated the highest returns over bonds and other assets. The following chart shows the growth of $1 from …