Why Invest in Emerging Market Stocks for Income

The S&P 500 is up 12.4% year-to-date based on price returns. With dividends reinvested the return jumps to 14.89%. The current dividend yield for the index is 2.23%. Despite rising corporate profits U.S. firms prefer to retain earnings than increase payouts. Compared to this paltry yield, many foreign markets pay much higher yields. While in …

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Knowledge is Power: Total-Return, Full Employment, Three Worlds Edition

 Dividend stocks are popular, maybe too popular (Financial Post) Glitter, glamour and gold (Arabian Business) Income-hungry investors should consider preferreds; Luukko (The Star) Guns in America  – Broken hearted (The Economist) Restore full employment with a massive infrastructure program (EPI) Nationalization Works (The Baseline Scenario) Black Swan author Nassim Nicholas Taleb divides the world into three (MacLeans) Total-return investing: An enduring solution …

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Average Annualized Equity Returns of Rapid Growth Markets 2000-2012

Investing in emerging and frontier markets involves higher risks compared to investing in developed markets.However for investors willing to learn and explore opportunities in the emerging world the rewards can be substantial. The returns can be especially high over a period of many years when the compounding effect comes into play. The Average Annualized Equity …

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Apple vs. Sony

Apple(AAPL) stock reached a peak of  $705.07 earlier this year and became the most valuable company in the world. Yesterday it closed at $529.69 and the market capitalization stands at $498.3 billion. Japan’s Sony Corp’s (SNE) stock trading in Tokyo reached the lowest price since 1980, a year after the company introduced Walkman. Sony’s market capitalization …

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Mexico Stocks Reach Record High

Mexico’s IPC Index is on a roll this year.The index reached a new all-time yesterday and closed at 43,183.28. Relative to Mexican stocks, Brazilian stocks have lagged this year. Indeed Brazil’s Bovespa and the IPC index have diverged in performance since early 2010 as shown in the chart below: Click to enlarge Source: Yahoo Finance …

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