Diversification is the simple and easy way to avoid major disasters and achieve one’s long-term goal in equity investment. The following chart vividly makes this point clear.At the height of the global financial crisis, the S&P 500 fell 37% in 2008 but the consumer staples index declined by only 15%. Similarly no index has been …
Continue reading ‘S&P 500 Sector Returns by Year from 2007 Thru 1H, 2017’ »
The following is an neat chart showing the growth of US National Debt, GDP and debt held by the public. Most of the outstanding debt is held by the American public and not Chinese as commonly misunderstood. So the theory that China can crash the US economy by simply dumping their US treasury holdings is simply …
In an earlier we looked at the emerging market returns. The following chart shows the returns for developed markets from 2003 thru 1H, 2017: Click to enlarge Note: The returns shown above are based on MSCI country index returns. Source: Novel Investor Related ETFs: iShares MSCI Germany Index Fund (EWG) iShares MSCI Canada Index Fund (EWC) iShares MSCI Australia …
Continue reading ‘Developed Market Returns by Country From 2003 Thru First Half 2017’ »
The US unemplyment rate stood at 4.4% in August according to BLS data. Despite the steady decline in the rate since the Global Financial Crisis(GFC) wage growth contniues to be stagnant. In most industries wages have not kept up with inflation. However the economy as a whole is growing due to credit markets. Debts of …
Continue reading ‘How American Workers Suffer a Double Whammy of Higher Taxes and Lower Wages’ »
Emerging markets have performed well so far this year with countries like India, Brazil, Mexico, etc. up by double digit percentage points. Unlike developed markets, emerging markets tend to me more volatile in terms of returns from year over year. The chart below shows the returns of emerging countries from 2003: Click to enlarge …
Continue reading ‘Emerging Market Returns by Country From 2003 Thru First Half 2017’ »