The New York Times published an expose last week on the wealth accumulated by the family of outgoing Chinese Prime minister Wen Jiabao. According to the article, Mr.Wen’s family and relatives control assets worth at least $2.7 billion. Though Mr.Wen comes from an extremely poor family many of his relatives have become very rich. Many other …
Continue reading ‘The Organizational Structure of the Chinese Communist Party’ »
Exchange Traded Funds (ETFs) are becoming more popular with investors than mutual funds in recent years. In order to meet the increasing demand ETF providers have sliced and diced the market in as many ways as possible and continue to add new ETFs to their offerings. From a recent article in The Journal Report of …
Continue reading ‘Comparing Equity Mutual Funds’ Performance in US and Europe’ »
The total number of British companies traded publicly on the equity markets continue to decline for many years due to many reasons. Unlike in the past, many companies do not find a compelling need to go public. In addition, companies are able to fund their capital requirements through internal funding and issuing debt. The explosive …
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U.S. Corporate Profits reached all-time highs recently this year despite all the ills plaguing the economy such as high unemployment rate, debts issues, political uncertainty, etc. Click to enlarge via Decisions Based on Evidence from St.Louis Federal Reserve What are companies doing with the profits? The current yield on the S&P 500 is 2.01%. …
In an article last year on the relationship between economic growth and equity returns in emerging markets I wrote: “In a study of 16 major markets by the Vanguard group, the correlation between economic growth as measured by GDP per capita and long run stock returns since the 1900 was effectively zero.” However a recent …
Continue reading ‘Relationship between Stock Market, GDP and Earnings’ »