S&P 500

  • 11 Dec
    Don’t Underestimate Market Sentiment

    Don’t Underestimate Market Sentiment

    • Sentiment is perhaps the strongest market driver. We’ll discuss the current situation.
    • It certainly doesn’t pay to be a fundamental market arbitrageur.
    • Should you follow the trend or is there a way to be smart about it?



    Introduction

    I’ve always preferred fundamental analysis, value investing, and looking for a margin of safety. That is still my main focus when analyzing and investing in a company, but I’ve learned that there is something no fundamental investor can disregard, market sentiment. More →

  • 06 Nov
    This Is Why You Need To Be Invested In Emerging Markets

    This Is Why You Need To Be Invested In Emerging Markets

    • In investing, having a strong tailwind is perhaps more important than picking the right stocks.
    • Finding good stocks in emerging markets isn’t that difficult, and plenty of them trade on U.S. exchanges.
    • It all boils down to fundamentals. Rebalance accordingly between developed and emerging markets.



    Introduction

    I’ve talked a lot about investing in emerging markets, but I’ve never assessed emerging markets from an holistic perspective.

    Today, you’ll read everything you need to know about investing in emerging markets. It’s extremely important to know why to invest in emerging markets, and then to understand the best way how to do so because not every investment in emerging markets is going to do well. More →

  • 18 Oct
    On The 30th Anniversary Of 1987’s Black Monday, Today’s Market Looks Eerily Similar. Should You Prepare For A Crash?

    On The 30th Anniversary Of 1987’s Black Monday, Today’s Market Looks Eerily Similar. Should You Prepare For A Crash?

    • The data indicates that the likelihood of a crash similar to October 1987 is the same today as it was then.
    • This doesn’t mean the stock market will crash tomorrow.
    • It only means that you should know yourself extremely well and relate your investments to your risk reward appetite. Only this can prevent you from the biggest mistake investors usually make, i.e. sell at the bottom of a bear market in total panic and capitulation.



    Introduction

    On Monday October 19, 1987, the stock market crashed a whopping 22.6% in one day. Is it possible that the same could happen tomorrow? Well, let’s compare the current market and to the one back then. More →

  • 16 Oct
    Doing This Could Increase Your Returns By $2.6 Million

    Doing This Could Increase Your Returns By $2.6 Million

    • It’s somehow accepted that stock returns have been between 8% and 10% in the past. That is correct, but only for a short period in history and it’s not true for all markets.
    • We’ll discuss stock returns over the past 100 years globally which will paint a different picture than what the predominant opinion would have you believe.
    • This doesn’t mean stocks are bad investments, you just have to understand how to go about them. After all, it’s your financial life on the line.



    Introduction

    Currently, most financial advisors will state that the best rational investing pattern is to invest in index funds as it’s impossible to beat the market, and that index funds have been a great investment vehicle over time.

    That would be a correct statement, but the returns that are noted by those who are trying to sell you an index fund are cherry-picked from historical examples. But the truth looks a little different. More →

  • 22 Sep
    This Is Why A Market Crash Is Good For You

    This Is Why A Market Crash Is Good For You

    • It might sound counterintuitive, but high stock prices aren’t that great for the majority of investors.
    • If you take the perspective that looks at long term returns and actual business ownership, your future income would be much higher now if the S&P 500 had stayed at 1,000 points for the past 10 years.
    • Don’t think stock markets only go up, look to Japan to be reminded of that.

    Introduction

    Everybody is so afraid of a stock market crash and here I am talking about how it can be good for you.

    As much as it sounds counterintuitive, a high stock market isn’t good for long term investors. The ultimate goal every investor should have is to accumulate as much ownership as possible, not to gain temporary value. More →

  • 04 Sep
    Is It Possible To Time The Market?

    Is It Possible To Time The Market?

    • Accurate market timing would lead to amazing returns, however it’s extremely difficult to actually time the market. I’ll show why.
    • As market timing is difficult, I’ll also show what you can do that will allow you to lower your risk and increase your returns.
    • Focusing on long term underlying earnings will allow you to outperform the market and significantly outperform the average investor.

    Introduction

    The question many investors ask themselves is should they try to time the market.

    This is especially important now that many, including myself, keep shouting about how the market is overvalued.

    I have also discussed scenarios that imply a 70% downside for the S&P 500. Therefore, I understand your concern and I’ll try to provide a valuable answer to the question of market timing in this article. More →

  • 29 Aug
    Why Price To Book Is So Important

    Why Price To Book Is So Important

    • The stock market has been only going up in the last 8 years, and will probably continue to do so.
    • Nevertheless, it’s good to take a look at valuations and other financial metrics.
    • One metric that’s often disregarded but extremely important is price to book value.

    Introduction

    The stock market (S&P 500) didn’t go higher last month, which is, to be a bit sarcastic, very strange. More →

  • 21 Aug
    Real Estate Vs. Stocks – What Sven Says Makes The Better Investment Today

    Real Estate Vs. Stocks – What Sven Says Makes The Better Investment Today

    • As investors, we must be primarily concerned about risk and return, not asset class.

    Introduction

    I often get a question from people that have a decent amount of money about where to put that money as they know I specialize in investing, and especially the stock market.

    They’re often surprised when I tell them to invest in real estate and to leave the stock market to those who can take advantage of the volatility and greater risks especially now that stock valuations are extremely high, or to do both as an excellent diversification strategy. More →

  • 15 Aug
    Is It Possible To Find A Wonderful Business At a Fair Price In Today’s Environment?

    Is It Possible To Find A Wonderful Business At a Fair Price In Today’s Environment?

    • We’ll first define what a wonderful business should be and what a fair price would be in relation to general stock market risk.
    • We’ll look at price earnings differences among sectors and countries to find places to look for great investments.
    • A list of S&P 500 companies with low P/E ratios shows that it isn’t easy to find wonderful businesses at a fair price.

    Introduction

    Warren Buffett’s main advice to investors is to find a wonderful business at a fair price. Now with the S&P 500 price to earnings (P/E) ratio of 24.34, that implies an earnings yield of just 4.1% which makes me ask myself, is it possible to find a wonderful business at a fair price today?

    I’ll first describe what a wonderful business is, look at what would be a fair price for it, and then look to see if there are any such businesses around. More →

  • 04 Aug
    Think The Biggest Companies Of The S&P 500 Will Outperform? History Says Otherwise

    Think The Biggest Companies Of The S&P 500 Will Outperform? History Says Otherwise

    • The strongest companies in the S&P 500 may look invincible now, but history shows us this won’t last forever.
    • None of the companies in the S&P 500’s 1980 top 10 are still there now.
    • Top 10 S&P 500 companies largely underperform the S&P 500 in the long term.

    Introduction

    Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), Amazon (NASDAQ: AMZN), and Johnson & Johnson (NYSE: JNJ) are the 5 largest holdings of the S&P 500 accounting for 11.74% of the index. The other 495 companies account for 88.26% of the S&P 500 which is a pretty strong imbalance, but that’s how the S&P 500 is formed. Its weightings are based on market capitalization. The bigger the market capitalization, the bigger the weighting in the index. More →

1 2 3 4