Some investors may wonder whether they should own growth stocks or value stocks. Generally value stocks are stocks that are cheap compared to peers in terms of P/E ratio, P/B ratio, high dividend yield, etc. They tend to be strong and established firms with sound fundamentals. Growth stocks on the other hand tend to have the …
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Is Facebook an emerging markets play? Or put it another way is investing in Facebook a good way to gain exposure to emerging markets? In my view, Facebook is not an emerging markets play. Here is an excerpt from a recent Bloomberg article on this topic: With Facebook Inc.’s user growth in developing countries soaring, mutual funds …
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The currency market is the largest market in the world with trillions of dollars worth of global currencies traded. This market is larger than equities, oil and bond markets. One of the reasons that currency markets are bigger than equity markets is because central bank are the major participants in the market. On a daily …
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Some investors not have exposure to foreign companies in their portfolios because of home bias.Others may avoid investing in overseas firms due to the additional risks involved such as political risk, currency exchange risk, transparency issues, etc. For these investors there is a way to gain from the stability and growth the US consumer spending. This way can be …
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Investors across the world tend to biased towards their own country’s equity markets and accordingly overweight their portfolios with domestic stocks. However this home bias strategy can adversely affect an investor’s returns due to lack of diversification and depending too much on the domestic equities. The chart below shows how the home bias issue varies …
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