The economy of Canada is mainly natural resources based whereas the US economy is well diversified. Accordingly materials and energy are two of the major sectors in the benchmark TSX Index. The following chart shows the total returns and sector weights in the benchmark index of Canada and the US: Click to enlarge Note: …
Came across the below chart showing equity excess returns by decades. US has returned great returns in many of the decades shown. However other countries have outperformed the US in other decades. 1990s was awesome for US equity returns but in the following decade US stocks lagged their international peers. Click to enlarge Via: Patrick …
Continue reading ‘Rankings of Equity Excess Returns by Decade: Chart’ »
The Indian economy is in a severe slowdown with the latest GDP falling to just 5%, the lowest in five years. Unlike developed countries’ GDP rate, 5% is considered a low rate for India since it is an emerging market and has been growing at a much higher rate like 7% or more. With the …
Continue reading ‘Corporate Tax Rate Cut Propels Indian Stocks’ »
Setting a goal for retirement and following a plan to achieve that goal is important. The following infographic from Schwab shows how much one needs to save for retirement: Click to enlarge Source: Schwab
In the equity market, the only thing that is constant is change. To put it another way, today’s winner could be tomorrow’s loser. So investors have to be cautious in betting too much on one company or sector with plans to hold them for the long term measured in decades or forever. For example, some …
Continue reading ‘One Decade’s Winner Could Become Next Decade’s Loser’ »