I have written many times before on the benefits of diversification. A well-built portfolio comprising of various asset classes and types can withstand adverse market conditions including brutal bear markets like the one we witnessed with the global financial crisis of 2008-2009. According to a research report from Vanguard, broad market diversification cannot insure large …
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The return on an equity investment can be grouped into two parts: dividend return and price return. Dividend return is based on dividend yield and dividend growth. While dividend yield is important dividend growth is even more important especially for investments held over many years since returns are boosted due to the effect of compounding. …
Continue reading ‘What Drives Long-Term Return – Dividends or Multiple Expansion?’ »
Equity investing should always be for the long-term. Investing for the short-term rarely yields better returns considering the impact of taxes, costs, etc. Not to mention one can easily lose money since markets can be highly volatile in the short-term. Long-term can be defined as holding investments for 5 years or more. Holding periods of …
The automotive industry is one of the largest industries in the U.S. It can be considered as the second largest industry after the real estate industry. The U.S. government considers the auto industry to be highly important for the country even going to the extent of bailing out the industry a few years ago. Some …
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Emerging market equities have traditionally been considered for price appreciation as opposed to their income potential.As the name implies, emerging firms are highly attractive from the growth perspective since they have plenty of room to grow domestically and internationally in order catch-up with their developed world peers. However investors may be overlooking the fact that emerging equities can …
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