I wrote a post back in September about why ordinary investors should not time the market. This post adds another angle to the same topic. The first decade of the 21st century has been called as “The Lost Decade” for U.S. stocks as they were flat to down. In addition, the S&P 500 lost 23% …
Continue reading ‘One More Proof That Investors Should Not Time The Market’ »
Recently I came across an article titled “Buy, hold, regret” in the Buttonwood blog of The Economist. The main gist of the article was that the buy-and-hold theory does not work in all countries. From the article: IT IS a truth universally acknowledged that equities outperform over the long term, so that the best strategy …
Continue reading ‘Historic U.S. Asset Classes Return Over Different Periods’ »
The emerging markets of Brazil and India are vastly different in many ways. Brazil is not only blessed with many natural resources that the world wants but is also increasingly becoming as an exporter of manufactured goods. But Brazil has a small population compared to India. India on the other hand has limited natural resources …
Continue reading ‘Which Country is a Better Investment: Brazil or India ?’ »
The extreme volatility in the equity markets in the past few weeks are making many investors nervous. Some of them are making the wrong moves based on emotions. Yesterday’s Wall Street Journal had an article discussing how some people are liquidating their equity holdings and moving into cash. From the article titled “Tired of Ups …
Continue reading ‘Keep Calm and Buy These 10 Foreign Stocks’ »
Investors waiting to return to equities may want to consider the quality cycle, according to an article in the Risk and Reward report published by Invesco Perpetual of UK. Bear markets and recessions are usually followed by “junk rallies” in which low-quality stocks take the lead and their outperform high-quality peers. These speculative rallies can …
Continue reading ‘For the Next Stock Market Rally, Watch The Quality Cycle’ »