Dividends account for a substantial portion of the long-term total returns. This is especially true in countries or regions where the dividend culture exists. For instance, the S&P 500 dividend yield is currently just 1.55%. Most European countries on the other hand have dividend yields of 3% or more. The FTSE 100 for example has …

Continue reading ‘Comparing the Returns of MSCI Europe Price Index and Total Return Index: Chart’ »

The top performing stocks in the S&P 500 change over time. It is impossible to identify the winners among these 500 constituents of the index. This is one of the solid reasons to own a S&P 500 index fund instead of trying to pick the winners. The following table shows the best performing stocks (i.e. …

Continue reading ‘The Best Performing S&P 500 Stocks Over The Past 5,10,15 and 20 Years: Chart’ »

One of the key strategies for success with equity investing is diversification. I have written many times before that diversification can be done in many ways. For instance, one can diversify across sectors, regions, countries, asset classes, etc. When investing in overseas markets it is critical that an investor spread their assets across countries since …

Continue reading ‘The Periodic Table for Developed Markets Equity Returns from 2002 to 2021: Chart’ »

Mexico is benefitting from US firms’ near-shoring manufacturing operations since Covid-19 and the recent supply chain crisis. One way to validate this is by reviewing trade data between the two countries. According to recent data, Mexico’s trade with the US has increased year-over-year for the second consecutive month in January of this year. The following …

Continue reading ‘Mexico Starts 2023 as the Top US Trading Partner : Infographic’ »

The Real Return of the S&P 500 Index which accounts for inflation over the last century is shown in the chart below. During periods of high inflation (red zones) such as from 1929 to 1958 it took over a decade to move higher than previous highs. Despite inflation, a $100 investment in 1913 would have …

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