Archive of posts filed under the Strategy category.

Historical Perspective on the Relationship between Stock Yields and Bond Yields

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Last month fellow blogger and financial advisor Roger Nusbaum wrote an excellent article on stock yields vs. bond yields. While doing research on stock and bond yields, I came across the following chart which shows the relationship between equity and bond yields over 131 years: Click to Enlarge Source: Capital Flow Analysis “Until the 1970s, …

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Correlation between U.S. and Foreign Stocks

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I have written earlier about some of the reasons for investing in foreign stocks. Despite the synchronized crash of both foreign and U.S. stocks in the recent bear market, investing in foreign stocks still offer diversification benefits. The chart below shows the correlation between U.S. and foreign stocks during the rolling 12-month periods from December …

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Study: Growth Stocks Don’t Grow

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Growth stocks which have high price-earnings (P/E) ratios don’t grow their earnings faster the market, according to a new research study by Cannon Asset Managers. The study was based on 10,000 global stocks over a 35 year period. The study analyzed two aspects of investment results namely the relationship between price-earnings ratios and investment returns; …

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The Rising Dividend Strategy Applied To Canadian Bank Stocks

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Some investors prefer dividend-paying stocks for long-term investment as opposed to those that pay no dividends. I believe it is better to pick not just dividend paying stocks but stocks that consistently pay dividends and also increase dividends year after after. One strategy that investors can use to identify such high quality stocks is called …

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Equity Income Strategies with ETFs

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In a recent article fellow blogger and portfolio manager, Roger Nusbaum noted that “it is very difficult to build an ETF portfolio that emphasizes dividend yield.” Update: Please note that Roger said the previous statement in the context of building a portfolio with ETFs at the sector level. My article below discusses about using dividend …

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