Archive for November, 2011
Are We Headed For A – Severe Correction of the Stock Market?
An article in Barron says, the stock market extremely overvalued … And many experts agree Other Market!
Adam Barth in the article by a Baron, said: “Review the annual performance of the Dow on equity (ROE) for each 20-year period since 1920 (that is, from 1920 to 1939, from 1921 to 1940, and such) : The average income according to the book value varies only in the lower and largely immune to inflation, wars, massive changes in the tax code or some other external factor. “
“For 34 years in a row of 20 runs between 1934-1953 and 1967-1986, the yield has an incredibly narrow range from 10.5% to 11.6% -. An average of about 11% of the fallen has also remained the book value of the Dow near its historical average growth rate of 4.8% from 1920 to 2003 for each period of 20 years on the back. “
Later in the article, Adam Barth says: “While the Dow Jones average yield of 18% on equity over the previous decade, absurd, assuming a sustainable return on equity anywhere near this figure, historical view of the records.”
“Although there are many short periods in the past in which the return of the Dow Industrials equity well above 11% (in the 1920s, when it also, on average, 18%), has a high return on equity is always at the expense of future income and ROE was always close to its average of 11% every 20 years.
Although the causes (excessive credit creation, bookkeeping error) can be challenged, the results are indisputable. ” Read the rest of this entry »
Ten Year Performance of the Mexican Stock Market
Before analyzing the history of the Mexican Bolsa, or stock exchange, we are first, the strength of the Mexican peso. Ten years ago, the MX Peso was worth 9.7 cents and 9.5 cents it is now, essentially unchanged. Although the Mexican Peso is not fixed to the U.S. dollar, the peso has company with the U.S. dollar at a rate of about 10:01 in the last ten years instead of trading in the range of U.S. $ 0.088 / $ 0.111 pesos U.S. MX / MX pesos.
One of the main reasons for the currency in Mexico has been the policy of the new ruling party in control 2000th Mexico has been governed by Harvard alumni during most of the time specified above and will be continued under the same management for at least another four years. The PAN party, led by President Fox and currently by President Calderon supports balanced fiscal trade, flat taxes, lower taxes and free trade. Calderon’s motto is “Drive Mexico into the future,” the privatization, liberalization represents freedom and political control of the market economy. These financial policies and close relations with the United States and Canada, it is not surprising that the Mexican stock market has worked so well, moving more than six times during the past decade.
The EWW fund consists of a large basket of Mexican and is listed on the American Stock Exchange. In the past 10 years, winning the S & P 500 less than 25%, while the Canadian stocks advanced approximately 200% and Mexican shares a whooping 600%. If you were to average earnings over 10 years and acquired U.S. inventories increased annually in the amount of 2% per year, Canadian stocks by 7%, and stocks of Mexico at 20% per year. Read the rest of this entry »
The Stock Market Crisis in India – Worrying People
With the help of updates on Indian stock exchanges, one comes to know that the stock prices of several companies have come down. Showed for the latest updates, software companies, the great promise for growth are not good now. The prices for these software companies have declined, but people should not worry about it, because the IT experts, to say that the situation improved very quickly.
According to the latest Indian stock market, real estate is suffering too much. This is not to attract buyers and prices of real estate companies have declined. Those who believe in real estate that will improve the state and to come in time, this area can save an enormous growth began. Until then, people need to keep patience. Apart from the state of export is not well these days. Previously, the export sector, was created a lot of money abroad and thus contribute to the growth of Indian economy. Researchers believe that the export market will very soon again and again to add the country’s growth.
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