One of the many risks that investors have to take into consideration when investing in foreign stocks is Concentration Risk. This risk simply means a market is highly concentration with one stock accounting a large percentage of the allocation. Or to put it another way, one stock dominates the market. So a benchmark index that …
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At the beginning of the 20th century the US stock market accounted for 15% of global stocks. But since the end of World War II, the US market has made up more than half of the global market capitalization and the country has continued to maintain this dominance. Click to enlarge Source: Credit Suisse Yearbook 2017: …
Continue reading ‘The Sizes of World Stock Markets in 1899 vs. 2016’ »
The growing epidemic of Obesity is one of the major challenges facing member countries according to a new report published by the OECD. Obesity rates have continued to rise in the past decade and today nearly half of the adults in the OECD region are obese. According to their data, nearly one in three adults in …
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Quantitative easing and negative interest rate policies followed by major central banks in the past few years have been a disaster for savers. However these policies have been a boon to equity investors as asset prices have soared. The following chart shows the relationship between the value of assets on central bank balance sheets vs. …
Continue reading ‘Value of Assets on Central Bank Balance Sheets vs. the SP 500’ »
Yesterday major US equity market indices fell sharply after many months of strong gains and record highs. After the initial euphoria of the current administration wore off, stocks have been stuck in steady state for a few weeks now. Elevated stock prices and political drama unfolding in DC led stocks to their deepest decline so …
Continue reading ‘The Roller Coaster Of Investor Emotion: Chart’ »