I have written many times over the years that “time in the market” is more important than “timing the market”. This is because equity markets tend to overdo on either directions. That is markets overshoot during bull markets to astronomical levels only to decline dramatically at some point to great depths. In both directions, investors …
Continue reading ‘S&P 500 Calendar Year Returns vs. Intra-Year Returns: Chart’ »
The distribution of US equity returns based on total returns from 1825 to 2020 is shown in the chart below. Many studies have proven that over the long-term equities tend to yield a positive return than a negative return. The chart below confirms that as well. The only time US stocks as represented by the …
Continue reading ‘Pyramid Distribution of US Equity Total Returns From 1825 To 2020: Chart’ »
Gold is an important asset class to own in a well-diversified portfolio. Holding even a small percentage of one’s asset in gold can cushion a portfolio when markets volatile. As gold is generally considered as a safe heaven asset class, investors tend to rush into it when equities decline. Simply put, gold is a defensive …
Continue reading ‘How Does Gold Perform During Heightened Equity Market Weakness ?’ »
Coal is still one of the major energy sources in many parts of the world especially in Asia. Countries such as China, India, Indonesia, etc. rely on coal for their energy needs more than other sources. South Africa, for example depends on coal for 71% of its energy requirements according to a recent article at …
Continue reading ‘The Sources of Energy of G20 Countries: Chart’ »
Investors in funds such as mutual funds and ETFs tend to earn lower returns than the funds they own over a time period. Many studies in the past have proven this theory. The gap in return between investors and funds is due to a variety of factors such as timing the market, lack of patience, …
Continue reading ‘On the Gap Between Investor Returns and Fund Returns’ »