The stock market hasn’t returned a single red cent in over twelve years, as measured by the S&P 500. Twelve years is a long time to go without earning a return on your investment, particularly if you are close to retirement.
With the boom years of the 1980s and 1990s now a distant memory, it is not shocking to see investors losing faith in the cult of capital gains and gravitating instead to dividend-paying stocks and ETFs. In a world in which paper gains can be ephemeral, it’s good to be paid in cold, hard cash.
In many ways, this is simply a return to the basics of investing. Historically, before federal capital gains taxes and Modern Portfolio Theory shifted the industry to a focus on growth, dividends were the primary source of investor returns (see Figure 1), and over the past twelve years dividends have been the only source of investor returns.
Continue reading “How to Choose the Right Dividend ETF”
In “Human and Economic Evolution,” I discussed how natural selection is alive and well among humans, and used such examples as genetic resistance to malaria among Africans and high aptitudes in the maths and sciences among Ashkenazi Jews. Today I’d like to discuss an interesting finding reported in The Economist that is relevant to the China/Tibet dispute, and I’m going to tie it into a broader discussion of the human brain and investment psychology.
Tibetans and their supporters in Western countries have long contended that the Han Chinese do not belong in Tibet. New genetic research suggests they may be correct–to an extent.
Continue reading “Genetics, the China-Tibet Dispute, and Investment Psychology”