German vs European Stock Returns since 1970

German vs European Stock Returns since 1970

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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

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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 […]

Long-term, valuation is all that matters

Posted Leave a commentPosted in Investing

I recently found some charts on this tweet thread worth checking against some of my earlier posts on investing with a value tilt. These are similar to my earlier chart about forward 10 year investment returns versus on CAPE ratio, and can be summarized in the title of the first chart “Long term, valuation is […]

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

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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 […]