Archive of entries posted by David Hunkar

On The Correlation Between Economic Growth And Stock Returns

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The correlation between a country’s economic growth and equity market returns is very low especially in the long-run. Many studies have confirmed that high economic growth does not translate into high equity returns for investors. For example, developed equities have yielded higher returns than emerging equities in the past few years despite the lower economic growth …

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Tire Maker Bridgestone Corp’s Stock Split

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Japan-based Bridgestone Corp is the world’s largest tire maker in terms of sales revenues from tires only. The company’s annual tire sales revenue exceeds $28.6 billion. Bridgestone’s stock trades as an unsponsored ADS on the OTC market under the ticker BRDCY. Today the stock closed at $71.60. Until today, one ADS represented two ordinary shares. Due …

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Are Under-Performing European Banks A Better Investment Than American Banks?

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European banks have lagged in performance relative to their American peers since the Global Financial Crisis for many reasons. For example unlike U.S. banks, most banks in Europe were reluctant to raise capital by issuing shares. This only made the situation worse as they were unable to recover quickly. Five years after the crisis, the …

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Why German Electric Utilities Are Stuck In Neutral

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Two of the largest German electric utility stocks E.ON AG(EONGY) and RWE AG(RWEOY) were on a downtrend trend for a few years now and seemed to be stuck in neutral this year.The end of the Federal elections recently has also not yet brought changes to highly controversial German energy policies. The main reason for the poor …

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Comparing Pension Systems Across Countries

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Mercer Consulting recently published the Melbourne Mercer Global Pension Index report rating pension systems around the world. The U.S. pension system received a “C” grade based on this study. Denmark has the world’s best system followed by The Netherlands and Australia. It is interesting that the pension system of Chile is ranked highly with the systems …

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