One of the dilemmas often faced by investors in dividend-paying stocks is if they should reinvest the dividends or not. Reinvesting dividends received from equity investments on a periodic basis such as monthly, quarterly, bi-annually or even annually can substantially boost the total returns earned, especially in the long-term due to the effect of compounding. …
Continue reading ‘Reinvesting Dividends Can Yield Excellent Returns’ »
Charts are great way to visually represent data. The widely popular phrase “A picture is worth a thousand words” is indeed true, in most scenarios. However sometimes one has to dig deeper into the data shown in the chart in order to get a better understanding the information being displayed. From an article titled Real Estate: …
Continue reading ‘Investors Should Use Charts With Caution’ »
Here is a chart that shows the various players in the pharmaceutical industry in the U.S.: Click to enlarge One of the fast-growing sectors within the healthcare industry is the pharmacy benefit management(PBM) business. The companies in this space provide administration services to control drug cots to patients and other clients. Express Scripts Holding …
Major U.S. markets reached all-time highs last week. For example, the S&P 500 reached a record high of 1,687.18 surpassing the earlier high attained in 2007 before the global financial crisis. Multi-year return of S&P 500: Source: Yahoo Finance All the cheer and excitement that followed for reaching the milestones may be premature. This is …
Continue reading ‘What is the Impact of Inflation on Equity Returns ?’ »
Timing the market is not a good idea for most investors. Following this strategy is especially detrimental to long-term investors. Short-term investors also should avoid this strategy since even shorter time periods timing the market usually leads to lower returns. Investors holding equities for less than five years can be considered as short-term investors. Proponents …
Continue reading ‘Is Market Timing A Good Investment Strategy?’ »