Investing Archives - chart planet

Is it a good idea to invest when stocks go down?

Posted on 2020-04-29 by Chart Planet2023-03-18

Yes, but only if the market has crashed very seriously. The same is with selling – historically it is good to sell only when markets have skyrocketed unprecedently.

Suppose I have invested USD 100 in stock two years ago. It has gained some positive or negative amount of dollars since then. What gains could I expect after one year if I invest USD 100 today? After analyzing historical data I see that future gains are almost certainly positive only when markets have had dropped more than 35% in two years from their original value. Also, future gains are almost certainly negative when markets have had grown more than 80% from their original value.

What: “Gain” is the amount in dollars one’s investment would change from the initial USD 100 invested. Investment is divided equally between Dow Jones Industrial Average and Nasdaq Composite indices.
When: Monthly data between February 1985 and April 2020
Source: investing.com

Are gold and oil safe-haven investments?

Posted on 2020-04-27 by Chart Planet2023-03-18

One dot represents one moment in time between February 1985 and April 2020. So, if you sense, that after 6 months the price of stocks will be lower than today, it might be a good idea to start buying gold. Based on historical data, it will probably end up gaining you positive returns.
Whereas oil gains are not that consistent.

This tiny analysis of scatterplots shows that gold is a safe-haven investment and oil is not so.

What: “Gain” is the amount one’s investment would change if USD 100 were invested six months ago. Stock is made from Dow Jones Industrial Average and Nasdaq Composite indices. Oil is represented by Crude Oil.
When: Monthly data between February 1985 and April 2020
Source: investing.com

Are gold and oil good investments?

Posted on 2020-04-22 by Chart Planet2023-03-18

I never really understood investing in commodities. It seems that gold and oil gain more for long term investors when stock prices begin to go down and other investors seek alternative investments, thus raising the price of oil and gold.

After such interpretation, it seems that a recent increase in gold gain is probably caused by investors running from stock markets which are about to collapse, not anything related to gold itself. This might not be true.

However, oil gains have some significant fluctuations on their own.

What: “Gain” is the amount one’s investment would change if USD 100 were invested five years ago. Stock is made from Dow Jones Industrial Average and Nasdaq Composite indices. Oil is represented by Crude Oil.
When: The chart begins in February 1990, but the data begins in February 1985. The most recent data is in April 2020.
Source: investing.com

Do people invest their money?

Posted on 2020-04-13 by Chart Planet2023-03-18

Among my acquaintances, it is not very common to invest in something more sophisticated than pension funds, however, as this chart shows, in some countries more than half of the money in households are held in the form of equity, funds, bonds and other types of investments.
This data does not show how many households invest, just the amounts of money. It is very likely that only a small fraction of the richest people account for the majority of money in the types of investments I focus on.

But let’s celebrate Estonia, Hungary, USA – I believe a lot of people make conscious decisions about money there. Are they good? That’s another question.

What: Distribution of household financial assets by type.
When: 2018
Where: 36 countries form EU or OECD
Source: Data was mixed from two sources, which seem to be very consistent: Eurostat – Household financial statistics + OECD – Household financial assets