Why Long-Term Investors Should Not Lose Their Faith in Stocks

Stocks can be volatile in the short-term. However over the long-term measured in years they tend to be outperform other types of assets such as bonds, cash, gold, etc. The trick is to be patient and not sell out when there is a downturn in the equity markets. Investors that ignore the short-term declines and …

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The Average Company Lifespan in the S&P 500 Index is Falling

The average company lifespan in the S&P 5oo index is less than 20 years and falling compared to an average of 30 years in the 1960s. While there are many reasons such as buyouts, mergers, going private, etc. for this situation, one of the main reason is technological changes. As technology changes quickly today’s Amazon(AMZN) …

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Historically Bear Markets Tend To Be Shorter Than Bull Markets

Stocks perform well relative to other assets in the long run measured in years or decades. This is possible because even if there are bear markets during any given time period, they usually are shorter than bull markets. For example, over a 10 year period if a bull market leads to a 50% increase with …

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When the Dividend Grows the Stock Price Follows: A Case Study

One of the investment theories with respect to investing in dividend stocks is that when the dividend grows year after year the stock price will appreciate as well. So identifying companies that consistently raise their dividends would generate excellent returns as the share price also grows in tandem. This is because dividends are out of …

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