Skip to content
Learning that drives better investment decisions

Financials Haven’t Added to Return in Asia over the past 10 Years

Financials Haven’t Added to #Return in #Asia over the past 10 Years


  • In this study, we separated financial companies from non-financial companies in Asia ex Japan
  • Return has been pretty much the same
  • Volatility was slightly higher for Financials, and it was highly correlated
  • We usually don’t include Financials in our various stock portfolios
  • A few reasons are because Financials: require macroeconomic research, are often used as market exposure stocks, are government regulated, and are commodity businesses (one is unlikely to grow profits massively relative to peers)
  • We don’t increase complexity if it doesn’t enhance performance


DISCLAIMER: This content is for information purposes only. It is not intended to be investment advice. Readers should not consider statements made by the author(s) as formal recommendations and should consult their financial advisor before making any investment decisions. While the information provided is believed to be accurate, it may include errors or inaccuracies. The author(s) cannot be held liable for any actions taken as a result of reading this article.