Daily Archives: May 23, 2021

May Stock Market Purchase – Be Selective

Four years ago Hendrik Bessembinder, a finance professor at the Arziona State University, published a very interesting paper on stock market returns. It showed that despite the tremendous stock market gains over the past century, most stocks are actually duds. In fact, of the roughly 26,000 stocks listed between 1926 and 2016, more than half lost money or did worse than holding one-month treasuries. Yikes!   On the other hand , just 4% of stocks accounted for all the net wealth creation over this time, roughly $35 trillion!   Bessembinder added to his work in 2019 by looking through an international lens. It makes for even more stark reading. About […]