The following chart shows the returns of various asset classes from 2001 to 2010: Click to enlarge The 10-year annualized return for foreign stocks was 3.94%. However they returned over 32% in 2009 and 8% in 2010. While foreign stocks fell over 43% during the credit crisis in 2008, they yielded double digit returns every …
Continue reading ‘Chart: Another Look At Why Diversification Matters’ »
Crude oil prices continue to fall this year with the price for October delivery dropping to $88.61 on the New York Mercantile Exchange according to a Bloomberg report today. Demand is projected to decline as economic growth slows especially in the developed world. In addition, the Paris-based IEA lowered its estimates for oil consumption this …
Continue reading ‘Hunting for Investment Options Among Foreign Oil Stocks’ »
Most global bank stocks are in the negative territory so far this year. Especially European financials have been hit hard in recent months due to the resurgence of sovereign credit crisis. However some foreign bank stocks may be getting cheaper now and are worth a look at current levels. From a Bloomberg article titled Europe …
Continue reading ‘Are Foreign Bank Stocks Worth A Look Now?’ »
Equity market returns after bear markets are positive and sometimes the rebound is higher than the percentage of decline. So investors with a long-term horizon can take advantage of lower stock prices when markets are in a downward trend. The following graphic shows the cumulative equity returns once the bear market ends: Click to enlarge …
Continue reading ‘Bear Markets Are Always Followed By Positive Returns’ »
U.S. equities fared very poorly in the lost decade with the nominal S&P 500 stock price down 20% for the decade excluding dividends. The graphic below shows the performance of the S&P 500 index by decades: Click to enlarge Source: A lost decade for stocks. Will next one be better?, Christian Science Monitor While U.S. …
Continue reading ‘Chart: Fixed Income Sector Returns from 2001 to 2010’ »