Jack Bogle, the founder and former CEO of The Vanguard Group gave an interview to Bloomberg’s Carla Fried earlier this month. His views on investing in markets outside of the U.S. is wrong for many reasons. I will discuss two such reasons below. From the interview: You’ve often reminded investors that what’s done well in the past probably won’t do …
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The S&P 500 and Dow Jones closed at all-time records of 2,078 and 17,959 respectively yesterday.However this is the fifth recovery this year for the S&P 500 according to an article in Bloomberg. From the article: Today’s gains in the S&P 500 completed the fifth recovery this year from a decline of 4 percent or more, just …
Continue reading ‘Despite High Volatility Stock Market Continues To Move Higher’ »
Oil prices have been stable up until recently at around $110 price per barrel and $100 seemed to be the floor.However since mid-June this year prices have plunged dramatically to below $60 per barrel. On Friday Brent crude oil closed at $61.38 for February, 2015 delivery on the NYMEX. There are many ways to profit …
The four phases of a valuation cycle are shown in the chart below: Click to enlarge Source: Global Investor 1.14 – Europe, August 2014, Credit Sussie According to this CS report published earlier this year, European stocks are in the “Optimism” cycle and should get to the “Reality” cycle soon as earnings and macroeconomic fundamentals improve.
European stocks have been laggards this years relative to the decent performance of U.S. stocks. However moving forward, European stocks have better growth potential compared to their American peers for a variety of reasons two of which are discussed in this post. 1. Currently U.S. stocks are expensive while European equities are relatively cheap based on …
Continue reading ‘Two Reasons On Why European Stocks Have Room To Grow’ »