The annual total returns for developed markets from 2003 thru 2017 are shown in the chart below. These data are based on MSCI index returns. Last year Austria topped the list with a return of 59%. Except Israel, all the developed countries in the chart had double digit total returns. The gap between these countries …
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The US stock and bond market performed very well last year. US equities as measured by the S&P 500 yielded total returns that were well above the historical average and US Treasury bonds also earned above average total returns with a year-end return of 2.1%. The chart below shows the annual total returns of S&P …
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Most equity markets have performed well this year with the US market and major emerging markets increasing by double digit percentages. So investors looking to deploy cash may be wondering which equity markets are cheap as we head into 2018. The following table compares the valuation ratio of global markets: Click to enlarge Source: Which of …
Dividends play an important role in long-term equity returns. In fact, dividend growth is more important to long-term returns than dividend yield and P/E expansions. According to an post by Matthew A. Young at Young Investments, dividend growth accounts for a large portion of returns. From the article: Dividend Growth is Key MSCI published a report …
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Active investing is not s good investment strategy for most retail investors. Passive investing trumps active investing in the developed markets. But does it make sense to follow active investing in emerging markets? According to a recent article at CityWire, active investing makes sense in emerging market due to many reasons. The article notes some …
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