Diversification of assets is an prudent way to reduce risk in a portfolio. While the concept of diversification is important volatility is another factor that investors should focus on to generate higher returns. Why does volatility matter? The table shows the performance of two sample portfolios with both having an initial investment of $1.0 million: …
Here is an interesting chart showing the share of world stock markets at the end of 19th century and last year: Click to enlarge The size of the stock markets of France and the UK declined significantly in the period shown due to both the countries losing their status as world superpowers. However …
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Test table 1 withwp-table Reloaded pLUGIN:
Equities beat other asset classes such as bonds and short-term deposits over the long-term.Stocks not only yield higher returns than those asset classes but also yield higher returns on an inflation-adjusted basis. The following graphs for three developed markets over the course of a century proves this point: Real Equity Returns in US (top), UK …
Continue reading ‘Comparison of Real Equity Returns over a Century Between US, UK and Italy’ »
Each year iShares releases the updated Single Country Index Returns chart. The latest version of this chart for Developed Markets from 2002 to 2011 is shown below: Click to enlarge in pdf format A few observations: Australia, Norway, Singapore and Canada have the highest 10-year annualized returns of over 11.0%. The 10-year annualized returns for the U.S. …
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