The returns of the S&P 500 Index often published by the media and others is the price return. However for investors the correct return that matters for the index is the returns including dividends reinvested. This is because S&P 500 firms pay dividends and most long-term investors reinvest them. Currently the dividend yield on the …
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Student loan debt is the largest debt in the US after mortgages. According to the Federal Reserve, the outstanding US student loan debt reached an astonishing $1.5 Trillion at the end of first quarter, 2018. This debt mountain is so huge that it is bigger than even outstanding credit card loans and auto loans. From …
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The MSCI Emerging Markets Index is the most popular index that tracks the performance of emerging market equities. The composition of the index has changed dramatically over the years. The following chart shows the composition of the index by country weights at inception in 1988 vs. the composition in March, 2018: Click to enlarge Source: …
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The Aerospace and Defense sector is one of the hottest sectors in the US equity market. Stocks in this sector have rewarded investors with stable and consistent growth in the past few years. A basket of stocks in the S&P index for this sector has outperformed the S&P in terms of total returns (capital returns+dividend returns) …
Eurozone stocks are not expensive relative to their US peers based on Cyclically Adjusted Price to Earnings ratio according to an article by John Oliver at AMP Capital, Australia. He discussed four reasons on why Eurozone stocks are attractive at current levels. From the article: Eurozone shares remain attractive While question marks remain over Italy and …
Continue reading ‘Comparing Valuations of Eurozone and US Stocks’ »