Simple arithmetic charts are OK for short-term performance review, but can be misleading for long-term purposes. Semi-log charts are best for long-term perspective.

Arithmetic charts space each Dollar move equally on the vertical Y-axis. Semi-log charts space each percentage move equally on the vertical Y-axis. Either method creates only minor differences for short-term charts, but dramatic differences over the long-term, particularly if the security is strongly trending.

The following charts of MSCI emerging market indices illustrate the point. They show 15+ years of gross performance (price plus all dividends) for the emerging market index (proxies: EEM, VWO), India (proxy: INP), China (proxy: FXI), Brazil (proxy: EWZ), Russia (proxy: RSX) and Mexico (proxy EWW).

The semi-log format (called “semi” because the X-axis remains arithmetic with equal spaces between dates) gives a truer picture of trend.  A constant rate of change on

Major organized conflicts over the last 100 years have relied increasingly on air power. Military aircraft make decisive differences between the relative war capabilities of violently opposed nations. It is also a vital ingredient of deterrence for potential threats to homeland security. The stock market potential of the Aerospace & Defense Industry is extremely sound.

Brazil, Russia, and China have some civilian aircraft manufacturing potentials. However, they are not significant in the face of the entrenched positions of the United States and Europe. The latter has suffered from a series of management set-backs, leaving a field open for U.S. companies. India and China lead the world in demand for new civilian aircraft, and there are global requirements for more energy-efficient models. This phenomenon adds to the business values of the Aerospace & Defense Industry.

We have a similar position with respect to outer space. Though a handful of nations are able to