One of the topics that I have written many times on this blog is the concept of Market Timing. This strategy involves selling at market peaks and buying at market lows. While this sounds pretty simple, obviously it is impossible to execute for any investor. If it was so easy to do, then everyone will …
Continue reading ‘Why Market Timing Does Not Work: A UK Example’ »
The widely used benchmark for emerging markets from provider MSCI has changed substantially in recent years. As emerging markets evolve the index weightings changes accordingly. The graphic below shows the comparison of country and sector weights of the MSCI Emerging Markets Index in 2008 and 2016: Click to enlarge Source: Active Viewpoint: Global Emerging Markets, Martin Currie …
Continue reading ‘Composition of MSCI Emerging Markets Index 2008 vs. 2016’ »
The benchmark index of the Indian equity market is the BSE Sensex Index. Though the Sensex is main index for Indian equities it is not the ideal index for many reasons. For example, emerging market investors such as those investing in Indian stocks invest to gain from the growth in the Indian economy.However investing in an …
The Periodic Table of Investment Returns for Asset Classes from 1997 thru 2016 is shown in the chart below. Last year Small Cap Value stocks were the best performers while international stocks were the worst performers. The last time foreign stocks had decent returns were before the Global Financial Crisis of 2008-09. Click to enlarge Source: Prudential
Investing in equities is a great way to build wealth over the long-term. Equity markets have created many millionaires and billionaires. However it is important to note that not all stocks are wealth creators in the long-term. According to a study by ValueWalk in 2015, 39% of U.S. stocks were money losers over their lifetime. …
Continue reading ‘39% of U.S. Stocks Are Losers Over The Long-Term’ »