Foreign companies listed on the US markets may terminate their American Depository Receipts(DRs) for a variety of reasons including lack of liquidity, interest, costs, etc. This is different from a company moving their listing from an organized exchange such as the NYSE to OTC market. In such cases the ADR will continue to trade but …
Many countries depend on natural resources for generating revenues. However abundance of natural resources can be a blessing or a curse. Despite blessed with rich resources some countries remain poor. For example, Angola is the largest producer of oil in sub-Saharan Africa. Yet the country has the highest infant mortality rate in the world. Certain countries …
The U.S. equity market has had an excellent performance two years in a row. In 2013, the S&P 500 soared by 29.6% on price basis and this year it is up by 12.6% as year-to-date (YTD) as of Dec 22nd. Many developed and emerging markets on the other hand have had a bad year with returns …
Dividend stocks can generate higher returns from an equity investment compared to non-dividend stocks. The total return from dividend stocks can get a significant boost from dividend reinvestment especially over the long-term. The following chart shows the difference in returns between total returns and only price returns using the MSCI All Country World Index: Click to enlarge …
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Jack Bogle, the founder and former CEO of The Vanguard Group gave an interview to Bloomberg’s Carla Fried earlier this month. His views on investing in markets outside of the U.S. is wrong for many reasons. I will discuss two such reasons below. From the interview: You’ve often reminded investors that what’s done well in the past probably won’t do …
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