Last year was a great year for investors with most global markets soaring by double digit percentages. For instance, the S&P 500 was shot up 22% on total return basis. The MSCI EAFE Index went up even higher with a total return of 26%. The following chart shows the total returns of different asset classes: …
Continue reading ‘Asset Class Quilt of Total Returns From 2000 To 2017’ »
Commodity investing is not for everyone. Investors need not hold commodities as an asset class in their porfolios despite what Wall Street promotes them to be. The following chart shows the investment returns for various commodities from 2008 to 2017: Click to enlarge Source: Using commodities as a tactical portfolio diversifier, Proactive Advisor Magazine Commodities are …
Continue reading ‘Commodity Table of Investment Returns 2008 to 2017’ »
The US equity market may end the year with a loss barring any Santa Claus rally or a miracle. So investors may be wondering if this is the start of a bear market. Bear market is usually defined as a decline of 20% or more. According to an article at Schwab, very few of corrections …
Continue reading ‘US Equity Market Corrections and Bear Markets Since 1974’ »
US markets are on track to end the year with negative returns. However over the long run, US equities have had more positive annual returns than negative returns. The following chart shows the Distribution of US Equity Returns from 1825 to 2017: Click to enlarge Note: The returns shown above are Total Returns ( i.e. price …
Continue reading ‘Pyramid Distribution of US Equity Returns 1825 to 2017’ »
Many of the major equity markets are in the negative territory year-to-date. The S&P 500 is down by 4.77% based on price alone. But more than half the stocks in the index are down by more than 20% according to a recent MarketWatch article. Similarly half of global stocks are represented in the MSCI World …
Continue reading ‘Half of Global Stocks and S&P 500 Stocks Are Now in a Bear Market’ »