A Lost Decade For Emerging Markets (and Small Caps, and …?)

Posted Leave a commentPosted in Charts

I recently discovered that SeekingAlpha has made it even easier to embed charts into articles and blog posts thanks to an integration with YCharts. I have found YCharts to be fast and powerful for visualizing fundamental data and longer-term total returns that I used to think required a far more expensive Bloomberg terminal, or custom […]

Using the Singapore Dollar as a “Global Currency” Proxy

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Today’s chart addresses a question I often get “how do I diversify away from a strong dollar, given that the euro, yen, and other currencies don’t look especially attractive with negative yields?”. One way of looking at global currency risk is through the IMF’s special drawing rights (SDRs), a unit of account developed around the […]

Expected Return of Stocks and Bonds vs CAPE Ratio

Expected Return of Stocks and Bonds in One Simple Chart

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One of the most frequently asked questions I am sent is “what is the rate of return I should expect when I invest in the market”? With bonds, it is fairly easy to see that a short-term US Treasury note bought with a yield of, say, 2%, will return you 2% per year if held […]

Globally diversified domestic stocks

Globally Diversified Domestic Stocks

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One reason I hear some investors are uninterested in buying foreign-listed stocks is that they believe the foreign revenues of some of their home-based companies already provide enough international diversification. The classic example is Coca-Cola, whose sales have spanned over 100 countries for years, so arguably Coca-cola is more like a “global portfolio” than a […]

How to double your money with government bonds in less than 2 years

Posted Leave a commentPosted in Charts, News, Web finds

Today’s chart is thank’s to this tweet by Mohamed El-Erian. Government bonds bore most people, in part because they promise low fixed rates of return, barely above bank deposit rates, and often lock in their rates for long periods of time over which inflation could eat away the value of the principal returned at the […]

Turbulence vs damage

Turbulence vs Damage in Stock Investing

Posted Leave a commentPosted in Charts, Investing

I have no experience piloting airplanes, and admit there have been several times as a passenger that I have been afraid of turbulence. What helps me stay calm in turbulent flights is remembering descriptions I heard from at least one pilot interview on how insignificant most turbulence is compared with how high the plane is […]

Why I love investing in health care, not biotech

Posted Leave a commentPosted in Charts

I prefer to be as sector agnostic as possible when investing, but when pressed, I admit that healthcare is one of my preferred industries to invest in.Β  While sensitive to regulation and high professional service fees, healthcare is something humans have always needed, are likely to always need, which technology has made enormously higher in […]

Investing only in Real Estate or Bank Stocks

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Today’s chart in the sectors category plots what would happen if you only invested in either bank stocks or REITs, rather than the overall market. Financial analysis and accounting courses often treat financials separately, because financials like banks and insurance companies don’t really have “revenue” like other businesses do, and REITs are more about assets […]

Is it Safer to Invest in Utilities or Staples?

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At times like these, after a high growth sector like technology, telecom, computers, or railroads has had an amazing decade of high performance and high valuations, it is natural to ask whether it makes sense to invest in more “boring” sectors of the stock market like utilities and consumer staples. Today’s chart in the sectors […]

A tale of two tech funds

Posted 1 CommentPosted in Charts

Investing in technology is definitely exciting, but it is just as definitely difficult and uncertain which technology companies will become exponentially profitable and which will simply die.Β  Today’s chart in the sectors category is titled “A tale of two tech funds” plotting the dramatically different performance between two of the oldest technology sector funds from […]