In equity investing, dividends are an important and substantial component of a total return.This is true especially in the long-term due to the volatile nature of stock price gains and the compounding effect of dividend re-investments on returns. In the early 20th and entire 19th century, people invested in stocks mainly for dividend returns and not price …
Continue reading ‘Price Return and Dividend Return Of S&P 500 By Decade’ »
European banks have under-performed their U.S. peers for many years now. Though the Global Financial Crisis ended many years ago, European banks are still stuck in mud. After the financial crisis, banks in the continent muddled through the sovereign debt crises including the multiple episodes of the Greek saga. Last year it appeared like they finally stabilized and were …
Brent crude oil prices closed at just over $33.00 today. Since late last year the price of oil and equity prices are moving in sync with each other. The correlation between oil prices and stocks jumped to high levels in January according to an article by James Tierney, Jr. of Alliance Bersntein. From the article: Equity …
Continue reading ‘The Correlation Between Stock Markets And Oil Prices Remains High’ »
North America railroad stocks have declined substantially in the past year. As the volume of coal and oil shipped by rail continues to fall, railroads are adversely impacted. When crude oil was trading over at $100 per barrel, “oil by rail” was projected to be a huge opportunity for railroads when producers especially share oil producers shipped …
Continue reading ‘Long-Term Investors Can Consider Adding North American Railroad Stocks’ »
Money Managers Bleed Cash After Investors Pull Billions (Bloomberg) The Devastating Cost of Monetized Elections (Common Dreams) Health Care’s Continental Divide (Bloomberg) No country for outliers (The Hindu) Why Your Portfolio Needs Plenty of Stocks, Whatever Your Age (NY Times) The decline of “shareholder capitalism” (MoneyWeek) The Oil Rout’s Surprise Victims (Jason Zweig, WSJ) What to do with …