Why Invest In Foreign Small Cap Stocks

Many investors limit themselves to large cap companies when investing in foreign stocks. This is because large multinational companies are usually well-known and information about them are easier to access. In addition large-cap stocks are well followed by the investment community and are usually listed in major exchanges. Since putting one’s money in companies of …

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Why Long-Term Investors Should Ignore Daily Market Gyrations

Volatility continues to plague global equity markets since the beginning of the year. Like clockwork, stocks are up one day only to fall the next day. One or two or even a few up days in a row seem to be the start of prolonged bull market. But alas, those dreams seem to be disappear …

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Foreign Markets Offer Far More Opportunities Than US Markets

The number of publicly-listed companies are much higher in foreign markets than in the US markets. So foreign stock markets provide a fertile hunting ground for stock pickers. US investors restricting them to domestic companies lose out on many of these potential opportunities. The chart below the total number of listed companies in  the world …

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Why Holding Dividend-Paying Stocks Is Important

Holding dividend-paying stocks to hold in a well-diversified is a wise strategy. This is especially important for investors who focus on long-term goals such as retirement, paying for college, etc. I have written many times before on the advantages of dividend payers over non-payers. Investing in non-dividend stocks purely for price appreciation is not for the faint of …

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Price Return and Dividend Return Of S&P 500 By Decade

In equity investing, dividends are an important and substantial component of a total return.This is true especially in the long-term due to the volatile nature of stock price gains and the compounding effect of dividend re-investments on returns. In the early 20th and entire 19th century, people invested in stocks mainly for dividend returns and not price …

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