Knowledge is Power: Financials, US Healthcare, Balanced S&P 500 Edition

The sickly state of American healthcare (MoneyWeek) Mark Mobius: ‘beggar-thy-neighbour’ economics hurts us all (CityWire UK) How a more balanced S&P 500 can lead to richer returns (MarketWatch) Best yielding stocks in FTSE 100 look too good to last as dividend cover wears thin for the big payers (This is Money) Financials: A tricky time (Fidelity) Canada: David Kaufman: The …

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Credit Suisse is Bullish on European Stocks

Most major developed European equity indices are lagging their US peers this year. While the S&P 500 is in the positive territory year-to-date major European benchmarks are in the red as shown below: UK’s FTSE 100:  12.1% France’s CAC 40: -3.4% Germany’s DAX Index:  -1.6% Spain’s IBEX35 Index: -8.2% Stoxx Europe 600: -6.3% Source: WSJ Though …

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Current vs. Pre-Crisis Yields of Select Assets: Chart

Yields on various asset classes such as cash, bonds have declined significantly in the past few years especially in the developed world. For example, cash hardly earns any interest today in the US compared to around 3% average before the global financial crisis. For investors willing to take risk, local emerging market bonds are attractive at …

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In the Long Term Stocks Beat Cash: A British Example

Stocks usually tend to outperform cash and other asset types over the long-term measured in 5 years or more. The performance gap between stocks and cash over decades is even more wider due to the effect of compounding returns due to dividend reinvestment. While holding cash in a savings account offers safety and peace of mind, …

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