One of the themes I have discussed many times on this blog is the futility of market timing. Success with equity investing involves holding stocks for the long-term which includes periods of bull markets and bear markets. The following updated infographic from Schwab shows the difference in returns between three types of investors: Click to …
Continue reading ‘When Markets Dip, Don’t Drop Out: Infographic’ »
US equity markets fell yesterday with the Dow down 1.68% and the S&P 500 off by 1.33%. After a few years of smooth sailing investors are suddenly facing the gyrations of a volatile market. A myriad of reasons are being thrown around for the shift in market directions including rising interest rates, valuation concerns, extreme …
Continue reading ‘10 Stocks To Monitor And Add As Markets Wobble’ »
US stocks have had a multi-year bull market until recently. Even after the recent shakeup stocks have recovered and are again rising strongly. However in terms of valuations, American equities are expensive relative to their foreign peers. While US stocks have always enjoyed a premium over other developed markets, in terms of performance US stocks …
Continue reading ‘US Stock Valuations Are High Compared To Global Stocks’ »
The dividend yield of the US equity market as referenced by the S&P 500 has hovered around the 2% mark for many years now. This is one of the low yields among the major developed markets. At 4.18% for the S&P/ASX 200 Index, Australia has the highest dividend yield of all developed markets. Norway has …
Continue reading ‘The Dividend Yields of Developed Markets’ »
Among the major MSCI market indices, allocations to various sectors differ widely. For example, Financials account for nearly a quarter of the emerging markets index while they constitute only about 15% in the S&P 500. In Canada, financials have a higher allocation at about 34%. The tech sector’s allocation in the EAFE and Canada’s benchmark …
Continue reading ‘A Comparison of Sector Allocations of Major Market Indices: Chart’ »