One of the easiest and simplest diversification strategies is to diversify across borders.Since the performance of equity markets varies across countries in any given year, an investor can boost their returns by spreading their assets across many countries. For example, emerging markets that are highly dependent on commodity exports perform well when commodity markets boom. …
Emerging equity markets tend to offer higher returns than developed markets during some periods but not all the time. Emerging markets also go thru boom and busts like the developed markets but the magnitude of rise and fall in those markets is much higher than their developed world peers. In the really long run emerging …
Continue reading ‘Developed Equity Markets Outperform Emerging Markets in the Long Run’ »
The number of public companies in the US has continued to decline for many years now. One of the implications of this scenario is that investors have fewer options to invest in. To put it another way, billions of dollars flowing into the equity markets have fewer places to find a home. As a result, …
Reinvesting dividends can boost returns especially in the long-term due to the effect of compounding. One of the simplest and easiest ways for investors to earn higher returns is signing up for automatic dividend reinvestment. Unless one needs the cash for some other investment or one lives off of dividend income, reinvesting dividends is a …
Continue reading ‘On The Impact Of Dividend Reinvest On Annual Returns’ »
The Dividend Yields offered by Asian firms is higher other equity markets. With a dividend yield higher than 2.5% Asian companies pay the second highest yield after Europe. This rate is also much higher than the dividend yield of American companies. The chart below shows the comparison of Asian dividend yield to other markets: Click …