Archive of posts filed under the Strategy category.

Emerging Market Stocks are Cheaper Relative to US Stocks

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In a post yesterday I discussed about the elevated levels of US stocks. In today’s article let us take a look at how emerging stocks are cheaper compared to US stocks based on a recent research report. From a research report by Charlie Wilson,Phd , Portfolio Manager at Thornburg Investment Management: Despite the improvement in …

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U.S. Stock Market Valuation Remains High At Current Levels

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The U.S. stock market as measured by the S&P 500 has soared over 300% since the trough reached in March, 2009 at the peak of the Global Financial Crisis. The current bull market is one of the longest in history and valuations remain elevated according to an article by Manning & Napier Advisors. They predict that …

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In the Age of Disruption Which Sectors Offer Investment Opportunities?

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Disruption of incumbent businesses or entire industries is the latest strategy sweeping Silicon Valley. Thousands of young and highly educated professionals working in the startup world are finding ways to do things efficiently and cheaply. For example, Uber and Airbnb are examples of two disruptors that have cracked the taxi and hotel industries respectively. For …

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Two Charts Show Stocks Offer The Best Long-Term Returns

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Equities offer the best returns over the long-term over other asset classes. For instance, stocks can yield inflation-beating returns. There are very few asset types that can yield returns that beat inflation. The chart below shows the long-term global GDP growth and the performance of various asset types. Stocks easily beat cash and bonds over the …

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On the Impact of the Declining Average Tenure of a Company in the S&P 500 Index

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The average tenure of a company in the S&P 500 index has been on a decline for many years now. According to one research report, the average tenure is under 20 years now. So a S&P 500 company today may not exist in the index or even disappear completely within the next 20 years. Click …

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