U.S. companies are hoarding almost $1 Trillion in cash and cash equivalents in their balance sheets according to a Bloomberg report. Despite the sluggish economic recovery companies are fearful of putting this money to work. The S&P states: “The second quarter of 2010 marked the sixth straight quarter of record cash levels, amounting to $842 …
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I came across this interesting story at The Global and Mail site. From “The ‘blazingly simple,’ must-have portfolio: “About 10 years ago, retired political science professor Mike Henderson singled out these companies for the essential roles they play in the Canadian economy. He then invested in each of them for the core of the retirement …
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Generally small caps yield higher returns over large caps over long periods. In the last decade small cap stocks easily beat large cap stocks in terms of returns. From an article I wrote in May: The S&P 600 Index, a small-stock index, gained nearly 100% in the decade that began Jan 1, 2000Â , producing …
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In addition to the global financial crisis, foreign developed-country stocks have endured the Greek debt crisis, weakness in European currencies, doubts over the strength of the global recovery, etc. in the past couple of years. Accordingly many of the developed-country equities have been the worst performers so far this year. For example, the Spanish IBEX …
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The following chart shows the importance of dividend reinvestment on returns over a period of 101 years: Click to Enlarge Source: Triumph of the Optimists, Elroy Dimson, Paul Marsh and Mike Staunton, Princeton University Press, 2002, p. 145 as referenced in “The High Dividend Yield Return Advantage: An Examination of Empirical Data Associating Investment in …
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