Yields, growth rates and market price volatility

At the time of this writtting dividend yields of companies in the MSCI EAFE index (which tracks stocks in developed countries in EU, Australasia and the Far East) averages 5.8%,  vs. 3.3% for USA's S&P 500 index.  Dividend yields on smaller Thai growth stocks as we find them here currently have double this return.  My universe of stocks here have double digit current dividend returns -besides better expected future growth rates.

The mkt. prices on those will behave irregularly, often doing nothing. Then suddenly -out of seemingly nowhere- one shoots up with high volume, like just now the stock TIES is doing.  (Yes, its on my list).  And they often do not behave very closely with the SET benchmark index...and that is their beauty as their correlations are offsetting compared to the main SET index.

Trading volume levels are almost never a "cannot sell" issue when they wake-up...as trading volume then soars.  Then ever so often there is a dud called a dog,  that is the nature of things and is normal and needs to be pruned.
 
However overall and combined by using a diversified approach along with me paying close attention on the companies chosen of course, this style of investing has produced substantial averaged returns over the years!   In fact, double that of that thief Maddoff's everybody bragged about for years, the only difference is that they are real here. :)  And besides, often show lower volatility then the SET index, dominated by the yoyo large caps.

Best Regards,

Paul Renaud.
www.thaistocks.com