US Stock Valuations Are High Compared To Global Stocks

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’ »

A Comparison of Sector Allocations of Major Market Indices: Chart

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’ »

In The Long Run The Black Monday Was A Blip

On Monday, October 19, 1987 the Dow Jones Industrial Average fell an astonishing 22.61%. This was one of the largest declines in the US markets. Though “Black Monday” was scary it was a great time to buy stocks. In fact, in the long run the declines of that Monday turned into just a blip according to …

Continue reading ‘In The Long Run The Black Monday Was A Blip’ »

Vanguard: How to Navigate Through Market Volatility

Global markets have turned volatile in recent weeks. Earlier this month when US markets crashed for a few days market experts were out in full force saying rising interest rate, valuations, etc. were the reasons for the sudden change in the direction of the market. Some simply said that markets were due for a correction …

Continue reading ‘Vanguard: How to Navigate Through Market Volatility’ »