One of the very important factors needed for success with equity investing is the ability to stay invested during any market including bear markets. To put it another way, simply selling out when stocks crash 20% or more is a foolish idea.Investors who are unable to hold stocks when punishing market events occur should not bother …
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The US equity market is in positive territory with the S&P 500 up by 5.41% YTD. Most of the developed European markets are down so far this year. The Turkey crisis has added more pressure on some of the banks in Europe and the markets in general. Emerging markets have been hit especially hard with …
Continue reading ‘BlackRock: Asian Equity Markets Are Cheap Now’ »
Diversification is one of the simplest and easiest strategies that retail investors can follow to protect their portfolios from high volatility. Holding a wide variety assets across regions and countries and sectors and avoiding timing the market would go long in generating high returns. Trying to predict which sector will be winner during the next …
Continue reading ‘On the Importance of Diversification During Bear Markets’ »
The S&P 500 Index is not as diversified as many investors think. In fact, the IT sector alone accounts for just over 25% of the index and the weightage of the defensive sector has fallen continuously since the 1990s. S&P 500 sector breakdown: Click to enlarge Source: S&P The defensive sector used to account for …
Continue reading ‘Defensive Sectors’ Weightage in the S&P 500 Has Declined Since The 1990s’ »
Many multi-national firms based in the developed world have substantial exposure to overseas markets than their domestic markets. In fact, some derive a big portion of their revenue and earnings in foreign countries than their home countries. For instance, BHP Billiton Ltd is a FTSE 100 firm in the UK. However the mining giant earns …
Continue reading ‘On the Revenue Exposure of Top 10 Companies in the MSCI Europe Index’ »