Where Do Your Investment Returns Come From?

Tune in to our latest podcast episode, where we dive deep into the world of investments and unravel the key factors that contribute to investment performance. In this episode, you will learn the following : ● Investment Return: In simple terms, pick the stocks that go up. ● Backdrops in Investing: Cost of Capital, History, Interest Rates, Stock Market, etc. ● Troubled Asset Relief Program (TARP): The effects of TARP and its parallels in today’s landscape. ● Growth Companies: Such companies must achieve higher growth rates, particularly in an environment with economic headwinds and higher capital costs as it is challenging to significantly increase its value when it is already of such magnitude. ● Investing in Growth Companies: They look less attractive to invest in because capital costs are higher and they may not sustain their growth rates therefore, higher risk. ● Treasury Yields: If you have a treasury that you’ve owned for a while, and the new yields get published for new treasuries, what you own gets compared to what now exists. If yields have changed, your principal value may change ● Dividend Stocks: A dividend that’s below 10-year treasury suggests that that stock, unless it has a really high growth rate, may be overpriced relative to a risk-free rate of return.