Some of the developed economies in the world are natural resources-based. These economies are dominated by commodity companies and financials. Highly innovative and disruptive tech sector form a small part of these countries. Countries such as Canada and Australia fall int his category. The Canadian economy is dominated by mining, energy and financials. Similarly resource …
Continue reading ‘Australia’s Top Companies in 2009 vs. 2019’ »
Australian banks are going through some of the worst crises they have ever faced. Billions of dollars in shareholder equity has been wiped out due to recent scandals. More recently Westpac(WBK) is under investigation for money laundering charges. Total fines imposed on the bank may exceed $1.0 billion, With that intro, let’s take a look …
Australian stocks have one of the highest dividend yields in the world. Many firms offer yields of over 5%. Over the long term rising equity prices together with high income,lead stocks to beat bank term deposits in terms of returns. With interest rates offered by banks at historical lows, the gap in return between the …
Continue reading ‘Stocks vs. Term Deposits in Australia: Which is better for the Long Term?’ »
The Australian equity market has one of the highest dividend yields in the world. With franking credits the current yield is around 6%. Since the 1900, the average annual return for Australian stocks is 11.8%.Dividends contributed over half of this return as shown in the chart below: Click to enlarge Source: Five great charts on investing …
Continue reading ‘How Much Did Dividends Contribute To Australian Stocks’ Total Return Since 1900’ »
One of the important factors to consider when investing in equity markets is concentration risk. To put in simple terms, if a market is highly concentrated or dominated by a handful of firms then the risk is high and vice versa. This is because high concentration leads to severe declines in a down market. A …
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