Stocks that fall to depressed levels may take years to recover.Sometimes such companies may end up going bankrupt and equity becomes worthless. Though stocks may be depressed they may continue to trade and simply frustrate investors for years. Depressed levels can be considered as big declines of 50% or more. The example below shows the …
Continue reading ‘Depressed Stocks May Not Recover For Years’ »
The world of equity investing has changed in the past few decades. The invention of mutual funds decades ago allowed many retail investors to participate in the market by pooling resources together and reducing risks. More recently the advent of ETFs have changed the investment landscape even more as investors have a wide range of …
Continue reading ‘Five Reasons Why Holding Individual Stocks Are Better Than Index Funds’ »
Which sectors pay the highest dividends and are the cheapest globally? According to a report by Schroder’s based on the MSCI World Value Index, financials have the highest dividend yields as shown below and are the cheapest based on P/E ratio. However many financials especially those in developed Europe are shaky and are struggling. So …
Continue reading ‘MSCI World Sectors: Dividend Yields and P/E Ratios’ »
“Home Sweet Home” – That may be the mantra some US investors may be tempted to follow now and avoid investing in foreign stocks. However following that strategy is not a wise move for many reasons. In this post, let us discuss some of the reasons on why abandoning foreign stocks is a bad idea. While …
The S&P 500 is up by 4% year-to-date.Many Latin American equity indices have easily outperformed the S&P 500. For example, Mexico’s IPC All-Share has increased by 6.4% and Brazil’s Sao Paulo Bovespa has grown by over 22%, etc. Brazilian stocks declined heavily last year and they have recovered with the political situation improving. In addition to looking …
Continue reading ‘10 Latin American Stocks For Income Investors’ »