One of the best time to buy stocks is when markets are volatile. Currently global equity markets are extremely shaky due to uncertainty over the US elections and investors’ fear of the Republican candidate winning the White House. Those who are able to invest new cash in the markets should buy stocks as markets swing …
Continue reading ‘Keep Calm and Buy Stocks When Markets Are Volatile’ »
Global trade is very important for economic growth. So protectionist trade policies will lead to stunted growth or a recession. Increased global trade has tripled the share of trade in US national income in the past 50 years as shown in the graph below: Click to enlarge Source: November 2016 Trump – another Brexit moment?, The Absolute …
Continue reading ‘On The Relationship Between US Trade and GDP 1960-2015’ »
Stock markets in the US and the world generally tend to perform well in US election years Historical data analyzed by Schroders shows the S&P 500 rose in 9 out of the 11 election years. The MSCI World and FTSE All Share indices gained in eight of the 11 years. Chart – Average Performance of …
Income seeking investors should not prefer tech stocks over utilities even though the former may feel like the best. In this post let me discuss some of the reasons for this view. I came across an article titled “Tech vs. Utilities: Which Is a Better Income Strategy?” by Jeremy Schwartz, Director of Research at WisdomTree Funds. …
Continue reading ‘No. Tech Stocks Are Not Better Than Utilities For Income’ »
The Canadian banking industry is highly concentrated with six major banks dominating the market. After surviving the Global Financial Cisis(GFC) relatively unscathed the banks were performing well until the commodity boom ended. The stocks of these banks declined some but did not collapse. With the recent recovery in commodities especially in the price of crude oil …
Continue reading ‘Comparing the Performance of Canadian Bank Stocks’ »