One of my favorite topics that I have written about in the past is the futility of trying to time the market. For most investors, the best strategy in equity investing is to simply hold stocks for the long-term. This is because nobody knows when markets will turn one way or the other. For example, the …
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The MSCI World Index represents large and mid-cap companies from 23 developed markets. The dividend yields for the various sectors in this index are shown in the chart below: Click to enlarge Source: 2017 GLOBAL INVESTMENT OUTLOOK, Franklin Templeton Investments
Valuation is important when investing in equities. Investing in stocks when valuations are cheap not only offers some downside protection but also juices the return when markets soar. The table below shows the valuations of major equity markets today based on four metrics: Click to enlarge Source: How low rates affect stockmarket returns, Schroders The lower …
cThe average tenure of a company in the S&P 500 Index has declined consistently for years now. The average tenure has fallen from 40 years to less than 20 years now. Average Tenure of a company in the S&P 500: Click to enlarge Source: Navigating Macro Choppiness, The Fiduciary Group Companies get booted out of the …
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The following chart shows the returns of various indices from 1996 thru 2015. Emerging markets were hot from 2003 until 2007. After a huge jump in 2009 their returns have been average to worse since then. Click to enlarge Source: Lazard Asset Management Download: Annual Returns of Key Indices Chart 1996-2015 (in pdf) The above chart …
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