The performance of European equities in the year to date has been disappointing. While in the USA stock exchanges are going from strength to strength, European share prices have been stagnating. Is it still worth investing in European equities?
To most people, the notion of the performance of shares relates to changes in the share price. This does not take into account the second component of return, i.e. the dividend. Simply looking at the share price development seems too one-sided to me. After all, dividends may account for up to a third of total return, as is the case for example for the shares listed on the Vienna stock exchange. However, shares with strong dividends do not generate the highest total return in every phase of the market.
Bitcoins were developed in 2009 as a virtual, digital currency by one person or group with the pseudonym Satoshi Nakamoto. Bitcoins are not physically tangible and are thus also difficult to grasp mentally for many.
Equities have without a doubt benefited from falling or low interest rates in the past. Along with company earnings, the level of interest rates is indeed a crucial driver of dividend-paying shares.
Having defined and explained various management styles in equity management in part 1, we will now have a look at the specific styles and their return/risk ratio over time.
A clear sense of style is not only important in fashion, but more and more so in equity management as well. But what does “style” mean in equity management? Do stylistic preferences change over time, like in fashion? If so, what triggers those changes? Questions upon questions, but before we go into detail in part 2 of this series, let us first clarify what we mean by style(s).
Who has not heard of the old stock exchange rule “Sell in May and go away” – sometimes complemented by “but remember to come back in September”. We had a closer look at this adage and have analysed the performance on the global stock exchanges over the past 48 years.
Many investors focus on capital gains while disregarding the significance of dividends. And are wrong in doing so, from my point of view.
Another year has passed, and it is time to look back. The year on the stock exchanges started out worse than in a long time. After only a few trading days, losses averaged 10%. The fear of economic turbulences originating in China dominated the markets. Meanwhile the currency of choice during a crisis, gold, was […]
Equities got off to a terrible start into 2016. At the end of February, a short but intense sell-off was triggered by the emergence of concerns over a slump of the global economy in connection with China. However, since mid-February the international indices have been on the rise without any significant breaks. Not even the […]