The Aerospace and Defense sector is one of the hottest sectors in the US equity market. Stocks in this sector have rewarded investors with stable and consistent growth in the past few years. A basket of stocks in the S&P index for this sector has outperformed the S&P in terms of total returns (capital returns+dividend returns) …
Dividend stocks have declined lately due to rising yields on US treasuries. As income investors can earn higher yields from treasuries income focused equity sectors like utilities, REITs and consumer staples have been less attractive. However a recent note at LeggMason says that investors can hold both treasuries and stocks to take advantage of both …
Continue reading ‘US Treasury Yields vs. S&P 500 Dividend Yield From 2013 To May 2018: Chart’ »
The US equity market has performed well in the past few years easily beating foreign developed markets especially developed Europe. Some investors may wonder if this is the right time to move out of domestic stocks and buy international stocks. For example, major European markets are flat or in the red so far this year. …
Continue reading ‘Should You Switch From US Stocks To Foreign Stocks Now?’ »
Investors in Real Estate Investment Trusts(REITs) are the big winners of new US tax laws. Currently dividends from REITs are taxed as ordinary income for US tax payers. This is substantially higher than taxes on qualified dividends at 10% for investments held for over one year. The ordinary income tax on REITs has also been …
Continue reading ‘REITs Investors To Benefit Big From New Tax Law’ »
Jeffrey Kleintop at Schwab has posted a fascinating article on the dangers and returns of international and US investing using the example of a shark attack. The following is an excerpt from the article: US and International The chart below shows us what stock market shark attacks look like using the relative performance of US …
Continue reading ‘Shark Attack: US vs. International Stocks’ »