US investors can invest in many foreign companies via American Depository Receipts(ADRs). They are basically share ownership in a foreign firm in an indirect way. In order to create an ADR for the US market, a brokers buys ordinary shares of a foreign in the domestic market and delivers them to a US-based depository bank …
The following chart shows the returns of various indices from 1996 thru 2015. Emerging markets were hot from 2003 until 2007. After a huge jump in 2009 their returns have been average to worse since then. Click to enlarge Source: Lazard Asset Management Download: Annual Returns of Key Indices Chart 1996-2015 (in pdf) The above chart …
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Diversification is one of the simplest and smart way to reduce risk in a portfolio. In order to be successful in the long-term with equity and bond investing, investors need not take unnecessary risks like putting all eggs in a single stock or a handful of stocks or bonds. To benefit greatly from diversification, investors …
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Innovation is an important determinant of a country’s economic growth. Hence high investment in R&D must be encouraged both by public and private institutions. The US traditionally leads the world in innovation in many industries. Countries in Europe are the next in coming up with world-class innovations. But among the European countries which countries are lead …
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Emerging equity markets were performing well this year until the US elections. But the outcome of the election adversely impacted these markets. Now with the election of Trump returns in many emerging markets have reversed course and lost much of the gains made year-to-date. Below is the YTD returns of select emerging market indices: China’s Shanghai Composite: …
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