Who is Responsible for Most of the Daily UK Stock Market Volume?

Most of the stocks in the UK equity market is held by pension funds, insurance companies, foreigners, etc. The share of stocks held by individuals is very low. But on an average about 700,000 shares are traded on a daily basis on the London Stock Exchange (LSE). The majority of the daily trades on the …

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Corporate Profits and Share Buybacks Are Up But Dividend Payout Ratio Remains Low

U.S. Corporate Profits reached all-time highs recently this year despite all the ills plaguing the economy such as high unemployment rate, debts issues, political uncertainty, etc. Click to enlarge     via Decisions Based on Evidence from St.Louis Federal Reserve What are companies doing with the profits? The current yield on the S&P 500 is 2.01%. …

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Relationship between Stock Market, GDP and Earnings

In an article last year on the relationship between economic growth and equity returns in emerging markets I wrote: “In a study of 16 major markets by the Vanguard group, the correlation  between economic growth as measured by GDP per capita and long run stock returns since the 1900 was effectively zero.” However a recent …

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Relative Size of World Stock Markets, end-1899 and end-2011

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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Australia Vs. Canada: Household Savings Rate and Debt to Disposable Income

The Canadian household savings rate in 1990 was higher than Australia’s household savings rate. However as a result of the global financial crisis and high interest rates the Australian savings rate jumped from negative 2% to 12% before stabilizing at around 10%. The Canadian savings rate has continued to follow the downward trend since 1990 …

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