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 …

Continue reading ‘Two Disadvantages of Holding Foreign Stocks in Retirement Accounts’ »

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 …

Continue reading ‘Another Perspective on The Concentration in the US market’ »

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 …

Continue reading ‘S&P 500 CAPE Ratio Since 1872: Chart’ »