German stocks have performed worse so far this year relative to other developed markets. For instance, the FTSE 100 is down just 1.38% compared to the DAX’s decline of 7.70%. The actual loss is even more since the DAX returns includes dividends when other indices do not. From a May 20th article in the WSJ on …
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Investing in foreign stocks involves many costs. One of the costs is the taxes paid to foreign governments on dividends earned by US investors. Such dividend withholding taxes can be huge for some countries such as Switzerland and while others such as Singapore do not withhold taxes. While paying a substantial portion of dividends earned …
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The Price/Earnings ratio (P/E) is sometimes used by investors to identify if equities are cheap or expensive and if getting in when the ratio is lower means higher returns in the future. However an article by Lord Abbett notes that P/E ratio alone is not a good indicator of future market returns. From the article: …
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Performing Reformers: How Political Change Can Affect Stocks (Charles Schwab) This is how fascism comes to America (The Washington Post) Asset Allocation – Why You Should Invest Internationally (T.Rowe Price) The inventor of the 401(k) says he created a ‘monster’ (MarketWatch) UK stock market recoveries (Invesco Perpetual) The German DAX’s Bad Year Is Even Worse Than It …
Continue reading ‘Knowledge is Power: Fascism, 401K Monster, DAX Index Edition’ »
U.S. firms are paying out more of their earnings in dividends to shareholders than investing in R&D or growing their businesses according to a report in the journal today. Though the dividend yield of the S&P 500 has stayed around 2% for many years, the payout ratio has increased in recent years to record levels. …
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