WSJ: Defense Stocks Are At Their Cheapest Valuations Now

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’ »

Six Differences Between The Dow and The S&P 500 Indices

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’ »

S&P 500 Calendar Year Returns vs. Intra-Year Returns: Chart

I have written many times over the years that “time in the market” is more important than “timing the market”. This is because equity markets tend to overdo on either directions. That is markets overshoot during bull markets to astronomical levels only to decline dramatically at some point to great depths. In both directions, investors …

Continue reading ‘S&P 500 Calendar Year Returns vs. Intra-Year Returns: Chart’ »

On the Gap Between Investor Returns and Fund Returns

Investors in funds such as mutual funds and ETFs tend to earn lower returns than the funds they own over a time period. Many studies in the past have proven this theory. The gap in return between investors and funds is due to a variety of factors such as timing the market, lack of patience, …

Continue reading ‘On the Gap Between Investor Returns and Fund Returns’ »