The cyclical bull market in US equities continue. Benchmark indices like the NASDAQ are establishing record highs and investors can’t get enough of some of the big tech names. Naturally some investors are wondering if the current euphoria in the stock market will come crashing down and the bull market will suddenly come to a …
Continue reading ‘US Economic Expansions Since World War II’ »
Many emerging market stocks have performed poorly so far this year. After a strong run until last year, emerging markets have declined this year due to a multitude of factors including rising oil prices, impact of trade war initiated by the US, rising US dollar, etc. Hence some of the major markets of the developing …
Continue reading ‘August Is The Worst Month For Emerging Market Equities’ »
The Callan Periodic Table of Investment Returns is an excellent tool to analyze the returns of various asset classes and the importance of diversification The chart from for the time period 1998 to 2017 is shown below: Click to enlarge Source: Callan Associates
One of the biggest factors that impact investor returns with equity investing is selling out when markets correct. Patience and not panicking is the key to long-term success with stocks. Just as stocks can go up they go down as well. For instance, the S&P 500 has seen annual average declines of 13.8% since 1948. …
Continue reading ‘S&P 500 Intra-Year Declines and Annual Price Returns 1948 to 2017: Chart’ »
The Balance Sheets of Central Bank of major economies have been increasing for many years now as a result of the many Quantitative Easing(QE) programs implements. The following chart shows the Central Bank Balance Sheets as a Percentage of GDP For Major Economies: Click to enlarge Source: The Long Unwinding Road—Navigating Regime Shift, T.Rowe Price