Spotted this article today on the Marketwatch website. The chart is a powerful one. Shows us how overwhelming the performance of the US stock market has been relative to the European market. This does not mean the out performance has to change immediately, but we find it useful as a guide to where the value might be. We hope you enjoy it.
“Our work suggests the most important determinant between growth and value performance is the scarcity or abundance of growth,” says Bank of America Merrill Lynch analyst Savita Subramanian. Since 1982, growth has outperformed during periods of earnings deceleration, and value has won when earnings were picking up.
The bond market has been pulverized in the past few weeks and for those who have anything beyond short maturities (5 years or so) are probably facing some substantial declines in the principal.
BOND ROUT – Our nation’s 2% coupon 10-year Treasury note with a par value of $1,000 was trading for $1,093 as of the close of trading on Monday 11/07/16 (i.e., the day before the presidential election), resulting in a current yield of 1.83%. The same 2% coupon 10-year Treasury note with a par value of $1,000 was trading for $811 as of the close of trading last Friday 12/09/16, resulting in a current yield of 2.47%. Thus,
Re-capping an eventful year as we head down the home stretch to 2016, we take great satisfaction in being named to this year’s Forbes list of America’s Top Wealth Advisors. It’s through the hard work and dedication of the entire Corda team that makes it possible for our firm to receive this prestigious award. Managing through tumultuous periods and keeping our focus on the value, dividend, and sometimes contrarian nature of our investing philosophy can certainly lead to good results over the long term. Once again, this year proved why such a strategy is geared for those dedicated and loyal to its core long term focus. We do not plan to
If you think Coca-Cola (KO) is all about fizzy drinks, think again. If you think Coca Cola is unable to compete at break neck speed, think again! Here’s an article that clearly shows how Coca-Cola is adapting to what society wants. I hope you enjoy this article as much as I do!
Returns for the EAFE Index over the past decade were low in absolute terms and low relative to its own history. For example, developed world stocks, as measured by the MSCI EAFE Index, returned just 1.7% annually since August 31, 2006, lagging the S&P 500 Index which returned 7.5% annually in the same time period. That 10-year underperformance relative to the S&P 500 Index may actually be signaling that this is a good time to take a fresh look at international stocks. Take a look at this article written by WisdomTree that discusses why international companies may be a good long term investment at this time.
Renowned investor Jeremy Grantham, Chief Investment strategist of Grantham, Mayo, and van Otterloo makes the case for investing in resource equities. He suggests valuations are hovering near historic lows relative to the broad market, and when resource equities have been cheap relative to the broad market historically, they’ve performed quite well going forward. Yet investors are wary of investing in commodity producers due to the commodity price risk and the always uncertain commodity outlook. He tells us that long-term investors willing to tolerate that shorter-term risk should strongly consider whether they have allocated enough to this exciting and unloved segment of the market.
Roth IRA’s are some of the last truly tax-free investments you can make. Unlike traditional IRA’s, where your earnings are taxed as income, earnings in a Roth are completely tax-free. That’s the good news. The bad news is, not everyone qualifies to be able to contribute to a Roth. For 2016, if your file your taxes as single, you can make a full contribution up to $5,500 per year ($6,500 over age 50) if your modified adjusted gross income (MAGI) is less than $117,000, and a partial contribution if your MAGI is between $117,000 and $132,000. If you file taxes jointly, you can make a full contribution if your
We spotted a fascinating research report on dividend yield and how companies with high expected yields typically do not return anything near the expected rate and the actual returns are much less. Many investors reach for yield and the data suggests the best position for expected yield to match realized dividend yield is between 3% to 5%.