The Emotional Cycle of Investors

Investing in the equity markets is hard and is even harder to become successful at it. One of the main variables that affects investors’ performance is emotion. Keeping emotions under control and being calm when markets are rough is easier said than done. However investors who are able to withstand severe corrections and bear markets, …

Continue reading ‘The Emotional Cycle of Investors’ »

The S&P Biotechnology Select Industry Index Returns: Chart

The S&P Biotechnology Select Industry Index is one of the major indices that tracks the biotech sector. The index is up just 8% YTD while the NYSE Arca Biotechnology Index has shot up over 23%. Click to enlarge Source: S&P Indices Overall Biotech stocks have performed so far well this year. Investors interested in the sector …

Continue reading ‘The S&P Biotechnology Select Industry Index Returns: Chart’ »

European Stocks Are Attractively Valued Now: Chart

European equities are attractive relative to their US peers based on cyclically-adjusted price-to-earnings ratio (CAPE) according to an article by Rory Bateman at Schroders. The following chart shows the comparison of valuations since 1982: Click to enlarge Source: Can European equities play catch-up in Q4?, Schroders A short excerpt from the above article: In summary, we are encouraged by …

Continue reading ‘European Stocks Are Attractively Valued Now: Chart’ »

Biotech Stocks Are Not For The Faint-Hearted

The biotech sector is soaring this year with the benchmark NYSE Arca Biotechnology Index up by over 27% YTD as of the end of September. Investors’ attraction towards biotech stocks shows no signs of showing as evidenced by many successful IPOs being launched on a weekly basis and also trading volumes. In addition, one of the top viewed pages …

Continue reading ‘Biotech Stocks Are Not For The Faint-Hearted’ »

U.S vs. Canadian Financials: Which Is Better?

The U.S. financial sector is similar to the Canadian financial sector in some ways but different in others. For example, the banking industry in Canada is dominated by just 5 or 6 major banks forming a nice oligopoly. However it is not the case south of the Canadian border. From the standpoint of equity returns, …

Continue reading ‘U.S vs. Canadian Financials: Which Is Better?’ »

Foreign Stocks To Watch: Money-Laundering Danske and Declining Deutsche Bank

Foreign stocks in the news and to watch for the following week are listed below. Additional links for items of interest are also included. Denmark’s Danske Bank(DNKEY) is involved in a massive money-laundering fraud at its Estonian branch. The CEO quit and the stock may suffer for months to come. The German government is in …

Continue reading ‘Foreign Stocks To Watch: Money-Laundering Danske and Declining Deutsche Bank’ »