Chart of the Day
If Trump Sparks US Profit Recovery Then Market Run Could Continue
Chart of the Day: Relatively low US profit margin means there is a chance for profit recovery. But for now, stock prices don’t seem to be supported by earnings.
Read MoreFed Has Hit Its Dual Targets, Time to Get Back to Normal Rates
Chart of the Day: Fed has an inflation target of 2% and an unemployment target of 5%. With both targets now hit the pressure on the Fed is to start to raise rates.
Read MoreTiny Interest Rate Hikes Are Painful for US Gov’t
Chart of the Day: Low rates allowed US Government debt to double with no rise in interest spending. But, if rates slowly double interest as a percentage of total spending would double to 10%.
Read MoreInterest Rates Down, Stocks Up and Vice Versa
Chart of the Day: Since 1987 short-term rate fell 91% to 0.5%. Long-term rate fell 62% to 3.0%. Falling interest rates, stocks up 745%.
Read MoreUltra-low US Rates and Very High Gov’t Debt
Chart of the Day: Normal rate of 2.7% would mean massive 5x increase in interest burden. The interest cost burden of a normal interest rate is now massive.
Read MoreNormalizing after 7 Years of Extreme Stimulus?
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.
Read MoreStop Loss Truncates Downside & Increases Upside
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.
Read MorePhilippines & Indonesia Had a High ‘Dream Factor’
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”.
Read More10 Stocks Reduces Risk by 80% in Asia
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.
Read MoreDiversification Is a Balancing Act
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.
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