Fixed income is an important asset class to own in a well diversified portfolio. Though bonds do not offer the thrill of stocks and potential high returns, they provide stability and earn a decent income during good times and bad. For instance, in a prolonged bear market for equities even dividends can get suspended or …
The universe of foreign stocks available for investment is huge relative to the US market. Thousands of firms trade on a range of markets from other developed countries to emerging and frontier markets. Foreign equity markets are also less concentrated than the US markets and hence offer excellent opportunities for stock pickers. In addition, going …
Continue reading ‘US vs. Foreign Equity Markets: Concentration of Top 5 Stocks 1990 to 2020’ »
One of the sectors that offers steady income and growth is the defense sector. Unlike other sectors such as utilities or industrials, defense industry is unique in that much of the future business depends on the federal budget. So this creates a cloud of uncertainty over defense stocks. However the good news is usually requested …
Continue reading ‘WSJ: Defense Stocks Are At Their Cheapest Valuations Now’ »
One of the questions that many investors often wonder is when is the right time to invest. Or to put it another way, is it really a good idea to invest when there are so many reasons not to go anywhere near the equity market. For example, during the pandemic panic of early 2020 some …
Continue reading ‘There Will Always Be Reasons NOT To Invest’ »
The two major benchmark indices of the US equity market are the Dow Jones Industrial Average, popularly known as the Dow Jones and the S&P 500. The Dow Jones is the oldest index founded in 1896 and is comprised of 30 blue-chip companies. The S&P 500 offers more depth and is more representative of the …
Continue reading ‘Six Differences Between The Dow and The S&P 500 Indices’ »