Chart of the Day Archives - Page 19 of 20

Normalizing after 7 Years of Extreme Stimulus?

By Andrew Stotz | March 7, 2017 |

Chart of the Day: Short-term rate of zero for seven years following the global financial crisis in 2008. Normal rate of 2.7% would mean massive 5x increase in short-term rates.

Stop Loss Truncates Downside & Increases Upside

By Become a Better Investor | February 27, 2017 |

Chart of the Day: We ran 1,000 simulations of a randomly selected 10-stock portfolio from a global universe. Stop loss truncates the downside and increases the upside.

Philippines & Indonesia Had a High ‘Dream Factor’

By Become a Better Investor | February 24, 2017 |

Chart of the Day: We consider five components of stock market return: Inflation, dividend yield, real book-value growth, share dilution and the “Dream Factor”.

10 Stocks Reduces Risk by 80% in Asia

By Become a Better Investor | February 23, 2017 |

Chart of the Day: At 10 stocks you have reduced risk by 80%. Adding more than 30 stocks to your portfolio gives limited additional benefits though.

Diversification Is a Balancing Act

By Become a Better Investor | February 22, 2017 |

Chart of the Day: Diversification is necessary to reduce risk, but too much diversification reduces chances of outperformance. It is a balance between risk and return.

Revenue Has Grown, Net Profit Has Not

By Become a Better Investor | February 16, 2017 |

Chart of the Day: Over the past five years in Asia, each sector has seen a positive compound annual growth rate (CAGR) in revenue. During the same time, only four sectors have seen a positive CAGR in net profit.

Profit Margin in Asia Almost at 2008 Bottom

By Become a Better Investor | February 15, 2017 |

Chart of the Day: As of 2015, revenue among Asian companies had grown by 115% since 2006, while net profit merely grew by 60% during the same period of time.

Not a Market-Timing Wizard? Stay Invested

By Become a Better Investor | February 14, 2017 |

Chart of the Day: If you can perfectly time the market on best or worst days, well, great – do it! Unfortunately, that’s a darn hard thing to do. For the average investor, it makes sense to stay invested.

20 Analysts Are Two Times Better Than Five

By Become a Better Investor | February 13, 2017 |

Chart of the Day: According to vox populi (wisdom of crowds) theory, more guesses should make consensus estimates more accurate. However, for companies with more than 30 analysts covering it, accuracy starts to deteriorate.

Demographics Drive ASEAN Growth

By Become a Better Investor | February 10, 2017 |

Chart of the Day: ASEAN 5 should see sustained growth from its “demographic dividend”, i.e. a higher proportion of the population being in the labor force.