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 …
The Shanghai Stock Exchange Composite Index is down 5.31% year-to-date. Among the BRIC countries, Brazil, India and Russia are performing much better with India’s Sensex up by more than double digits YTD. The Chinese economy grew by only by 7.4% in third quarter this year which is lower by the country’s earlier growth figures. China has predicted …
Continue reading ‘Which Countries are Vulnerable To a China Slowdown?’ »
When bond yields are lower than dividend yields of stocks some investors may be tempted to replace their fixed-income bonds with high-yielding dividend-paying stocks. But this is not a prudent strategy for the reasons discussed below. The current yields on the 5-year, 10-year and 30-year U.S. Treasury bonds are 0.63%, 1.64% and 2.81%. respectively. Many stocks …
Continue reading ‘Should Investors Replace Bonds With Dividend-Paying Stocks?’ »
The 20th century is widely called as the “American Century” in honor of the role the U.S. played in world politics. The Wikipedia definition of the term: American Century[1][2] is a characterization of the 20th century as being largely dominated by the United States in political, economic and cultural terms. The United States’ influence grew throughout the 20th century, but …
The S&P 500 is up 12.8% year-to-date(YTD). Compared to the performance of the US equity market, Latin America markets have been mixed so far this year. For example, Brazil’s Bovespa is up 3.1%, Chile’s Santiago IPSA is off 14.5% and Mexico’s IPC All-Share is up 15.4%. Traditionally the U.S. has long considered Latin America as its own …
Continue reading ‘Invest in Latin America For Superior Returns’ »