The following is a neat infographic showing the key composition of the Australian economy as of Feb, 2023. The average price of a house is shockingly high. So is the household debt as a share of income.
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Source: RBA
Amazon is the world’s top river based on volume discharge. It carries over 20% of the world’s freshwater to the sea. Africa’s Congo river comes second followed by Orinoco river of South America.
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Source: Insightartist
Diamond is the hardest metal in the world. Hence it is widely used in many industrial applications than just in jewelry. Since it is so hard diamond is used to scratch other metals. Of course in the jewelry world a diamond has no match in terms of beauty and value.
The next hardest metals in the world are Corundum and Topaz.
How about other metals?
The following neat infographic from Compound Interest shows the details:
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Source: The Mohs Hardness Scale: Comparing the hardness of minerals, Compound Interest
Below is a brief excerpt from the infographic description:
Diamond is commonly known to be the hardest material, but how do other minerals compare with each other? That’s the question the Mohs hardness scale, introduced by Friedrich Mohs in 1812, aims to answer. This graphic looks at his scale and where different minerals and other substances appear on it.
Mohs’ scale is a simple way of comparing the hardness of different minerals. The scale is built on comparisons — a mineral that scratches another is designated as having a higher value for hardness. These values are essentially a giant ranking system, in that they’re all relative. There’s no fixed value of hardness between the different numbers in the scale — in fact, diamond at 10 is several times harder than corundum at 9, but corundum is only around twice as hard as topaz at 8.
Treasury Inflation-Protected Securities (TIPS) are a type of security sold by the US Treasury. They sell for a term of 5, 10 or 30 years. TIPS offer many advantages to investors including as a hedge against inflation, diversification benefits and tax efficiency. During times of inflation, TIPS can provide higher levels of income and higher total return than other nominal treasuries since TIPS adjust for inflation. Below is a brief description of TIPS from Treasury Direct site:
As the name implies, TIPS are set up to protect you against inflation.
Unlike other Treasury securities, where the principal is fixed, the principal of a TIPS can go up or down over its term.
When the TIPS matures, if the principal is higher than the original amount, you get the increased amount. If the principal is equal to or lower than the original amount, you get the original amount.
TIPS pay a fixed rate of interest every six months until they mature. Because we pay interest on the adjusted principal, the amount of interest payment also varies.
You can hold a TIPS until it matures or sell it before it matures.
Source: Treasury Direct
The following chart shows the performance of TIPS in terms of income generated by inflation-protected securities based on iShares TIP ETF, TIP and iShares U.S. Treasury Bond ETF, GOVT:
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Source: 3 reasons investors should consider TIPS — even if inflation slows down, iShares
Two TIPS ETFs:
Two of the largest TIPS ETFs on the market are the iShares TIPS Bond ETF (TIP) and the iShares 0-5 Year TIPS Bond ETF (STIP).
The iShares TIPS Bond ETF (TIP) has an asset base of over $22.0 billion as of Feb 3, 2023 and the expense ratio is 0.19%. It closed at $108.21 on Friday. The ETF is up by 2.62% YTD.
The iShares 0-5 Year TIPS Bond ETF (STIP) has an asset base of over $13.0 billion as of Feb 3, 2023 and the expense ratio is 0.03%. It closed at $97.54 on Friday. The ETF is up by 1.07% YTD.
Disclosure: No positions
The US equity market has been one of the best performing markets in the world over the long term. The benchmark S&P 500 has grown steadily through various crises and events from 1970 thru 2022. Based on total returns of the index an investment of $10,000 in 1970 would have risen in value to over $2 million or $,2,209,027 as of March end, 2022. The average annual total return of the S&P 500 index during the period shown was 10.88% which is pretty good.
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Source: Bloomberg. Data from 12/31/1969 – 3/31/22. Past performance is no guarantee of future results. This chart is for illustrative purposes only and not indicative of any actual investment. The S&P 500 index is an unmanaged index of 500 companies used to measure large-cap U.S. stock market performance. Investors cannot invest directly in an index. Index returns do not reflect any fees, expenses, or sales charges. Stocks are not guaranteed and have been more volatile than the other asset classes. These returns are total returns and were the result of certain market factors and events which may not be repeated in the future
Source: MARKET PERSPECTIVE CHARTS by Edwin L. “Lee” Peters, III, Peters Financial
The key takeaway is not to focus too much on daily or short-term gyrations of the market and keep an eye on the long term goal of one’s investment in equities.
Related ETFs:
Disclosure: No positions