One of the investment theories with respect to investing in dividend stocks is that when the dividend grows year after year the stock price will appreciate as well. So identifying companies that consistently raise their dividends would generate excellent returns as the share price also grows in tandem. This is because dividends are out of …
Continue reading ‘When the Dividend Grows the Stock Price Follows: A Case Study’ »
In this blog, I have written many posts about the advantages of owning foreign stocks. For example, they offer a portfolio the benefits of diversification. However holding overseas equities in retirement accounts such as Traditional IRA, Roth IRA and other qualified retirement has many disadvantages. In this post, let’s take a quick look at two …
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The US equity market has become highly concentrated. A handful of firms particularly in the tech sector account for most of the gains earned so far this year. I recently came across an article by Rory Kutisker-Jacobson at South Africa-based Allan Gray who noted a different perspective on the concentration in the US market. Below is …
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U.S. stocks have performed extremely well so far this year until the recently one day big decline. However rising stock prices have also led to the expansion of the Price/Earnings ratio. According to Niels Clemen Jensen of Absolute Return Partners, US stocks are currently trading at a massive 32x earnings even with cyclical adjustment. Writing in …
The S&P 500 is no longer represents the true state of the US economy. The current bull market in tech stocks has further pushed the concentration levels in the index. A few weeks ago an article in The Financial Post noted that the concentration level in the S&P 500 exceeds the level reached in the …
Continue reading ‘The Concentration of S&P 500 Exceeds Late 1990s’ »