Credit Suisse published the popular Global Investment Returns Yearbook for 2016 last month. The report contains a wealth of data especially from a long-term and country-specific perspective. The following is a sample chart from the report. It shows the relative shows of the equity markets by country at the end of 1899 and 2015: Click to …
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One of the equity strategy topics that I discuss here often is the concept of ‘Market Timing’. This involves simply buying stocks when the market is down and then selling them when the market is at the top. Sounds simple. But if it were that easy then everyone would be a millionaire. In reality, timing the market …
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The behavior of stock market tends to follow a cycle.Similar to many conditions of an economy such as expansion, contraction, stagflation, etc. stock markets also go thru periods of booms followed by bust. The following is an interesting chart by Liz Ann Sonders at Charles Schwab. According to an article by Liz, the stock market …
Companies that grow dividends year-after-year tend to outperform based on total returns those that just pay dividends. One of the reason for this outperformance is due to the effect of compounding. When additional shares are purchased with dividends reinvested every year, over many years the returns are amplified. The following chart illustrates the above theory: …
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Diversification in a portfolio is an important strategy for long-term success. A well-built portfolio should not be concentrated heavily on a single stock or asset class or sector. Rather a portfolio should hold various assets such as growth stocks, dividend stocks, domestic stocks, foreign stocks, commodities, ETFs, closed-end funds, bonds, etc. Holding a diversified group …
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