The Dow Jones Industrial Average (or) Dow Jones Index is oldest benchmark in the world. Dow Jones is also the most popular index that tracks the US equity markets though the S&P 500 is a better representation of the US market. Similar to the Dow Jones, the EURO STOXX 50 Index, is Europe’s leading Blue-chip index …
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The S&P 500 Index that is benchmark of US equities is a price index – meaning dividends are not included in the return calculations. Since this index is the most popular and reported by the media all the time, investors may use this index to compare their portfolio performance. This is not the correct way …
Continue reading ‘On The Difference In Returns Between S&P 500 Price and Total Return Index’ »
European financials are under-performing so far this year. Banking stocks in particular have declined heavily due to a multitude of factors including fears of UK exiting from the EU. Unlike the swift recovery of US banks, European banks never full regained their glory since the peak of the global financial crisis. Years of poor returns …
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Investing in foreign stocks involves many costs. One of the costs is the taxes paid to foreign governments on dividends earned by US investors. Such dividend withholding taxes can be huge for some countries such as Switzerland and while others such as Singapore do not withhold taxes. While paying a substantial portion of dividends earned …
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The Price/Earnings ratio (P/E) is sometimes used by investors to identify if equities are cheap or expensive and if getting in when the ratio is lower means higher returns in the future. However an article by Lord Abbett notes that P/E ratio alone is not a good indicator of future market returns. From the article: …
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