Quick Chart: 20-Year Rolling Returns of Stocks vs Bonds

Posted Posted in Charts

Bonds may be safer than stocks in the short term, but they can actually be riskier in the long term. This is a quick chart of rolling 20-year returns of US stocks vs bonds using Shiller data, showing that there has never been a 20-year period in the US since 1871 where US bonds have […]

How the World Has Changed Since 1987

Posted Posted in Charts

Today’s chart was a quick visual reminder to me on how the world has changed since 1987 – namely, how it has become significantly more American and significantly less Japanese. The source is a FTSE Russell paper titled “Indexing The World”, which index geeks like me would consider required reading for understanding the difference between […]

Dividend Growth For Higher Returns

Dividend Growth For Higher Returns And Lower Risk, Long Term

Posted Posted in Charts

Today’s chart comes from the ETF giant BlackRock iShares, where in their guide to dividend investing with ETFs, they include on page 7 some surprising statistics about the performance of stocks who raise their dividends versus those who don’t (broken down by stocks who pay but don’t raise dividends, stocks that don’t pay dividends, and […]

German vs European Stock Returns since 1970

German vs European Stock Returns since 1970

Posted Posted in Charts

Today’s chart is a quick plot of German vs European Stock Returns since 1970, denominated in EUR, based on MSCI gross dividend total return benchmarks. This will be one of many charts on my 13 July webinar with Eurex on understanding DAX vs Euro STOXX futures, even though these are different indexes.

What 150 Years Of Market Crashes Teaches Long-term Investors

Posted Posted in Charts

One of the most frequently asked questions I have heard mostly over the past month is “how long will markets take to recover”? The short and honest answer is of course “nobody knows”, and a recovery in stock prices is not the same (or as important as) sustained growth in underlying cash flows, so work […]

US Stocks More Expensive than 1999-2000 DotCom Bubble High, According to EV/EBITDA

Posted Posted in Charts

Today’s chart is thank’s to this tweet by the People’s Hedge Fund Manager, showing the EV/EBITDA valuation ratio of the S&P 500 US stock index over the past 30 years. EV/EBITDA is sometimes called the “acquirer’s multiple”, and has certain advantages over Price / Earnings (P/E) as a valuation metric. Here are five earlier posts […]

S&P 500 Low Volatility Factor 1972-1990

Lower Risk, Higher Returns

Posted Posted in Charts

Today’s chart comes from one of the top 10 blog posts of S&P Dow Jones Index’s Indexology blog, showing how the low volatility factor has performed on US stocks over the past 40+ years since 1972. In other words, for the past several decades, the pattern for US stock investors has not been higher risk […]

Economic profit by industry, 2010-2014

Some industries really are more profitable than others

Posted Posted in Charts, Uncategorized

One of the concepts in academic economics which seems to obviously false in the real world is the idea that firms in a competitive market will earn “economic profits” of zero. An oversimplified version of that would be to say that after subtracting out all economic costs, including opportunity costs, there is no advantage of […]

Stock Markets by Country 1899 vs 2019

119 Years of Investment Returns, According to Credit Suisse

Posted 1 CommentPosted in Charts, Investing, Wealth Management

This morning’s ferry read is the Credit Suisse Global Investment Returns Yearbook 2019, for which I have to thank this excellent Twitter thread by Cambria’s Meb Faber for pointing out. Two of the charts I found worth a screenshot and share here show shares of global stock markets have changed since 1900 by country (header […]

Performance of Stocks vs Bonds vs 60/40 in Japan, USD net terms, 1984-2019

60/40 Has Worked Well, Even in Japan

Posted Posted in Charts

One of the most memorable lines I heard from my professors back at UC Berkeley was “what I am about to teach you here should work almost anywhere in the world, except Japan”. This was over a decade and a half ago, when many portfolios still needed to define whether they were “ex-Japan” and “ex-China” […]