Tag Archives: Netherlands

AEX index since inception with and without dividends re-invested

The AEX index is an index grossly composed of the 25 largest listed companies by market capitalisation on the Amsterdam Stock Exchange (Euronext). As of today the company with the highest weighting in the index is ASML. As can be seen in the table below is that the top 5 companies in the index have a total weighting of almost 50% while the top 10 has a total weighting of almost 70% in the index.

Top 10 AEX Index components by weight
Top 10 AEX Index components by weight as of September 3, 2019 (source iShares AEX ETF)

In the past I’ve shared a chart which showed the AEX index since inception with dividends re-invested and without. It’s time to share an updated version of that chart. This chart is a great example of how the compounding of dividends positively impacts long term investment returns. Via Twitter.

AEX index since inception with and without dividends re-invested March 1983 - September 2019 (Dutch: AEX herbeleggings index)
AEX index since inception with and without dividends re-invested March 1983 – September 2019

Dutch Government debt payments to GDP from 1950 till 2020 / Rentelasten Nederlandse Staatsschuld van 1950 tot 2020

A chart of the debt payments as a percentage of GDP of the government of the Netherlands from 1950 till 2020.

Een grafiek van de rentelasten als een percentage van het bruto binnenlands product (BBP) die de Nederlandse overheid betaald op de staatsschuld van 1950 tot 2020. Via Twitter

grafiek Rentelasten Nederlandse Staatsschuld 1950 - 2020 als een percentage van het bruto binnenlands product (BBP) bron CPB. Chart Netherlands Dutch Government debt payments to GDP (Gross Domestic Product)

The Dutch Money Supply Has Been Declining For 2 Years

The money supply is the total amount of monetary assets available in an economy at a specific time. There are different ways to calculate the amount of money in an economy and M3 is the most broad definition. This is important because there is strong empirical evidence of a direct relation between money supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy.

The interesting thing is that the amount of money in the Dutch economy has been declining for over 2 years now. I guess it has to do with people using their savings to pay down debt on their mortgages and other types of loans.

Not surprisingly inflation in the Netherlands is low. Last June it was only 0.9% according to CBS.

M3 Netherlands Total Amount in Euro's

M3 Netherlands Total Amount in Euro’s

M3 Netherlands Year over Year Change

M3 Netherlands Year over Year Change