One of the factors that investors consider when investing in emerging market equities is the stability of local currency against the US dollar. Generally currency depreciation is assumed to have an adverse impact on equities in an emerging country. However that assumption is not always correct and does not apply to all emerging markets. According …
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The current yield on the S&P 500 Index is 2.08%. The yield has stayed around the 2% range for many years now. However the dividend amounts paid out components in the index has increased over the years especially in the long run. The following chart shows the dividends paid per share and the yield on …
Continue reading ‘Dividend Growth of S&P 500 From 1972 To 2012’ »
The correlation between a country’s economic growth and equity market returns is very low especially in the long-run. Many studies have confirmed that high economic growth does not translate into high equity returns for investors. For example, developed equities have yielded higher returns than emerging equities in the past few years despite the lower economic growth …
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Emerging market stocks have lagged the performance of developed stocks this year. While the S&P 500 is up 18.6% year-to-date most emerging markets are in the negative territory or have yielded meager returns. A sampling of emerging market returns YTD are listed below: China’s Shanghai Composite: -4.8% India’s Bombay Sensex: 1.5% Brzail’s Sao Paulo Bovespa: …
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Long-term returns quoted for an investment based on decades should not be taken at face value. This is because such returns can be skewed over many years due to various reasons including bull and bear markets, economic expansion and contraction, geo-political events and so forth. Hence when reviewing a long-term return investors have to take …
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