Investors invest for the long-term and traders trade for short-term gains. The distinction is important when it comes to success in investing. Since most retail investor invest in equities to meet a long-term goal such as a retirement it is important to focus on total returns of an index as opposed to price returns when …
Continue reading ‘Total Return vs. Price Return Chart for the Dow and SP 500: Chart’ »
Many emerging market (EM) investors consider commodities and energy as the best sectors to invest in those markets. This seem logical since many emerging markets are commodity based economies especially materials and oil. For example, Russia is a major oil exporter while Brazil is major exporter of natural resources and agricultural products. While investing in emerging …
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In a post earlier today, I wrote about the proposed reduction in US corporate tax rate by the current administration. Should the rates decline substantially which sectors will be the biggest beneficiaries?. One of the misconception among investors is that the tech sector will be a big winner of a lower tax rate since they …
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European stocks are projected to beat US stocks this year, according to an article in Bloomberg yesterday quoting Goldman Sachs. From the article: European equities will catch up to their U.S. peers once the uncertainty surrounding near-term elections is lifted, according to Goldman Sachs Group Inc. The Stoxx Europe 600 Index will return 8 percent …
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European equities are attractive now relative to Asia-Pacific excluding Japan and US equities based on cyclically-adjusted P/E ratio. As the chart below shows the ratio is at 2009 levels for European stocks. Click to enlarge Source: EuroView: Rotation, earnings recovery and a view from the US, Schroder’s According to the above report by Schroder’s, in the past stocks …
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