Comparing the Economy of U.S. States to Other Countries

Posted by on

The U.S. economy is the largest in the world with a GDP of about $18.0 Trillion. The GDP of most countries of the world are small compared to the US. Since the U.S. economy is huge, the economic output of each of the individual states in the country is also huge. The size is especially interesting when we compare each state to other countries. The following graphic shows how each state compares to other countries based on the size of economy:

Click to enlarge

US States Eocnomy vs Other Countries

Source: Shareholder Report, 2015 Vol 2, U.S. Funds

Though Canada is a separate country, in terms of economic output it is just the size of Texas.

Also see:

10 Stocks To Hide In During Shaky Market Conditions

Posted by on

European markets ended in the positive territory yesterday. But U.S. markets fell after the Fed rate decision with the S&P losing 1.09%. Equity markets this year have been extremely volatile. One day it is China and the next day it is crude oil and the following day it is growth worries. Then repeat this sequence in a cycle.

Some investors may be wondering if there are stocks where they can shelter to escape from the crazy roller-coaster ride. Before we get to the “safe” stocks here are a few points to consider:

  • Despite big losses it is wise to avoid Chinese equities.
  • Highly speculative and high P/E tech stocks can easily get crushed should the current market movements turn violent. So stay away from them.
  • European utilities excluding UK can also be avoided.
  • Commodity stocks are not cheap or value plays now just because they have fallen 50% or more.
  • Panicking and selling out when markets are down is a bad move.Staying strong and keeping calm is the best strategy to achieve one’s long-term goals.

Some of the stocks that can offer shelter during adverse market conditions are listed below with their current dividend yields:

1.Company: Fresenius Medical Care AG & Co (FMS)
Current Dividend Yield: 1.02%
Sector: Health Care Providers & Services
Country: Germany

2.Company: Reckitt Benckiser Group plc (RBGLY)
Current Dividend Yield: 2.20%
Sector: Household goods
Country: UK

3.Company: Novo Nordisk A/S (NVO)
Current Dividend Yield: 1.38%
Sector: Pharmaceuticals
Country: Denmark

4.Company: Henkel AG & Co KGaA (HENKY)
Current Dividend Yield: 1.52%
Sector: Household Products
Country: Germany

5.Company: Diageo PLC (DEO)
Current Dividend Yield: 3.17%
Sector: Beverages
Country: UK

6.Company: Nestle SA (NSRGY)
Current Dividend Yield: 3.16%
Sector: Food Products
Country: Switzerland

7.Company: Unilever PLC (UL)
Current Dividend Yield: 3.10%
Sector: Food Products
Country: UK

8.Company: Heineken NV (HEINY)
Current Dividend Yield: 1.57%
Sector:Beverages
Country: The Netherlands

9.Company: Imperial Tobacco PLC (ITYBY)

Current Dividend Yield: 2.08%

Sector:Tobacco

Country: UK

10.Company: National Grid PLC (NGG)
Current Dividend Yield: 5.39%
Sector: Multi-Utilities
Country: UK

Disclosure: Long RBGLY

Infographic: The Future of US Nuclear Power

Posted by on

Electricity generation from nuclear power accounts for just 19% of the total power generation. This is low compared to some countries such as France which generate most of the power from nuclear power plants.  Most the nuclear power reactors in the US are more than 30 years old.

Click to enlarge

US Nuclear Power Future

Source: What Is the Future of Nuclear Power?, WSJ, June 3, 2015

The Tennessee Valley Authority  (TVA) is not a publicly traded company.

Disclosure: Long NextEra

Singapore Stocks Have Declined Over 25% In One Year

Posted by on

The Singapore equity market has declined strongly due to the slowdown in Chinese economy. Unlike other Asian economies, the city-state of Singapore is highly dependent on China.

The benchmark Straits Times Index is down over 11% year-to-date. Over the past one year the index has lost over one-fourth of its value as shown below:

Click to enlarge

Singapore Straits Times Index Return

Source; Yahoo Finance

Here is a short excerpt on the trade relationship between Singapore and China:

Though Singapore keeps a diverse portfolio of trade partners, China is its second-largest export and largest import partner (see Table 10). Malaysia is the other major trade partner, largely as a function of geographic proximity. The United States is Singapore’s fifth-largest export partner, accounting for nearly 6 percent of exports, valued at $23.9 billion.

Table 10: Singapore Export and Import Partners, 2013

Singapore Trade Partners

 

Source: World Bank.

Due to Singapore’s role as an energy transit hub, about one-third of its imports and exports consist of fuels and petrochemicals (see Figure 5). These products, however, play less of a role in Singapore’s trade with China, over half of which—on both the export and import sides—consists of machinery and electrical products (see Figure 6), mirroring Singapore’s overall trade composition.

Singapore-China Trade

Source: China’s Economic Ties with ASEAN: A Country-by-Country Analysis,  U.S.-China Economic and Security Review Commission

Following the overall Singapore market, the iShares MSCI Singapore ETF (EWS) has lost over 18% year-to-date and over 29% in one year.

Two of the largest Singapore banks – DBS Group Holdings Ltd (DBSDY) and United Overseas Bank Limited (UOVEY) have also fallen in line with the market. Unlike other countries Singapore does not charge withholding taxes on dividends paid out to foreign investors.The full list of Singapore ADRs can be found here.

Disclosure: No Positions

The Periodic Table of Emerging Markets 2015

Posted by on

Earlier this month I posted the Callan Periodic Table of Investment Returns for 2015. The following is The Periodic Table of Emerging Markets 2015 which shows the annual returns from 2006 thru 2015:

Click to enlarge

Periodic-Table-Emerging-Countries-2016

Source: US Funds

Download: The Periodic Table of Emerging Markets 2015 (in pdf)

A few observations:

  • Last year the best performing market was Hungary with a return of about 30%. This is surprising since Hungary is hardly on any EM investors’ radar.
  • The top three worst performing markets were all from Latin America – Colombia, Brazil and Peru.
  • Brazil lost its shine back in 2010. After topping the ranking in 2009, Brazil has been a negative performing market every year since 2011. Last year it lost an astonishing 42% after a fall of 13% in the previous year.
  • Russia was the worst market in 2014. But the market bounced back in 2015 to basically remain flat while most emerging markets declined.