Bonds are be an integral part of a well diversified portfolio. While equities can generate amazing returns when equity markets are booming but can decline when markets turn south. Bonds on the other hand, tend to earn average returns when bonds markets do well and their negative returns during other times are low. In addition, …
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Dividends form an integral part of evaluating the return on an investment. Dividend returns account for a higher proportion of total returns than capital appreciation in some markets. While in other markets such as the US, share price growth is the largest contributor of total returns. The following chart shows the split of total returns …
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The US equity market has historically performed well over the years. Stocks generally tend to grow over time and an investor with a long-term horizon can earn a decent return in equities than other asset classes. Over the past 100 years US stocks have had more positive returns years than negative ones. The following chart …
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Investing in emerging markets is riskier than investing in developed markets. One way to reduce risk and still gain from these markets is by diversifying part of one’s portfolio among a bunch of emerging markets. The best performing market in one year can easily become the worst next year. The following annual returns chart for …
Continue reading ‘Emerging Markets Returns by Country 2011 to 2025: Chart’ »
Most countries charge a withholding tax on dividends paid out by domestic companies to foreign investors. This tax can be substantial for some countries and will reduce the dividend yield. So its very important to consider the dividend withholding tax rates when picking foreign stocks. In addition to this tax, ADRs may also include other …
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