Bond Returns and Inflation

Posted on: August 7th, 2013 by David Atwood No Comments

This chart is showing how at current bond rates have traded below the cost increases to the Consumer Price Index (inflation) and combined with taxes, investors in bonds may be losing money before rates even begin to rise.

Think Global

Posted on: April 9th, 2013 by David Atwood No Comments

Fidelity Investments on Canada versus International Stock MarketsLink to Chart Canada represents only 4% of the global stock market and our home country bias may limit our opportunities to a very small selection.

Price Earnings Ratio’s and Dividend Yields

Posted on: November 24th, 2012 by David Atwood No Comments

The Situation: The Russell Global Index has returned an impressive 13%¹ annualized since the bear market bottom at the height of the “great recession” more than three years ago. Despite such returns, investors remain risk-averse in a macroeconomic environment that remains troubled. This poses a unique challenge for investors who seek returns in an uncertain […]

US Corporate Balance Sheets

Posted on: November 24th, 2012 by David Atwood No Comments

Solid interest coverage and balance sheets continuing to improve.

US Price Earnings Ratios

Posted on: November 24th, 2012 by David Atwood No Comments

  US Earnings are on sale, especially if you’re Canadian. Canadians paid over 45x earnings to buy U.S. stocks in 2002 and in the following 10 years their annualized returns were -1.9% (CAD). The last time earnings were this cheap in December 1988 the following 10 years produced annualized returns of 21.9% (CAD). Source: S&P, […]

Concentration of Wealth Throughout History

Posted on: June 25th, 2012 by David Atwood No Comments

This chart shows the economic prosperity of the world since the times of Jesus. In the beginning, economic prosperity was largely a function of where the largest populations were located. Prosperity had more to do with the number of births and deaths than actual productivity. Since the industrial revolution, productivity enhancements have been driving prosperity […]

U.S. Corporate Cash Levels Rising

Posted on: February 16th, 2012 by David Atwood No Comments

The ratio of cash and cash equivalents on the balance sheet of US non-financial corporations has reached levels unseen since the fourth quarter of 1963. Companies have benefited from improved profitability following cost cutting measures during the financial crisis, while cautiously postponing investment. The scare triggered by the liquidity crisis at the lows of the […]

DJIA with P/E

Posted on: February 15th, 2012 by David Atwood No Comments

Here is a picture worth a 1,000 words, so I’ll keep the explanation short! The top half of this chart makes it clear that stock prices can remain bound within a trading range for long periods of time. Range bound periods ought to come as no surprise seeing how routinely they appear following long periods […]

Time Smoothes Volatility

Posted on: January 9th, 2012 by David Atwood No Comments

Link: Time Smoothes Out Volatility This chart shows how volatility, (the swing between highest and lowest), is amplified over short periods of time and how longer periods of time dampen the swings.

Canadian Dollar Purchasing Power Parity

Posted on: January 9th, 2012 by David Atwood No Comments

Link: Canadian Dollar and Purchasing Power Parity This chart shows the range of purchasing power parity using the Canadian dollar against the U.S. dollar.