One of the myths among investors is that economic growth influences the growth of equity markets.However this is not true. Study after study has confirmed that there is no relationship between economic growth and equity markets growth. This is because stocks can rise for a multitude of reasons which have nothing to do with economic …
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Crude oil prices plunged by 46% in 2014. Yesterday oil futures for February delivery closed at $53.37 a barrel on the NYMEX. Gasoline prices have followed crude oil and have declined dramatically in the past few months and is now selling for less than $2.0 a gallon. The chart below compares U.S. oil production to imports …
Continue reading ‘Chart: U.S. Oil Production To Imports, 1973 To 2013’ »
The UK General election will take place in May next year. The contest will be mainly between the Conservatives and Labour. Though the radical U.K. Independence Party (UKIP) is growing in popularity among the general public it is highly unlikely to gain any significant number of votes.Ultimately either the Conservative or Labour party will win the elections as has …
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Why This Bull Market Is…Bull (Canadian Investment Review) Falling oil price highlights end of commodities supercycle (Deutsche Bank Research) Energy Bargain Hunters Plow Record Amounts Into ETFs (Bloomberg) 5 investments to stay away from in 2015 and beyond (Financial Post) China tops the charts (MoneyWeek) Australia’s economy (OECD) Oil and Emerging Markets: A Double-Edged Sword (Mark Mobius, Franklin …
Continue reading ‘Knowledge is Power: Bull Market, China, Buybacks Edition’ »
Dividends account for a significant portion of the total returns of the S&P 500 over long periods. The table below shows the contribution of dividends to the total returns of the S&P 500 over the decades since 1940: Click to enlarge Source: A Brave New World, Dec 2014, The Absolute Return Letter, Absolute Return Partners It is …
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