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Portions Of The Commercial Paper Market Have Come Back To Life


A defining characteristic of the period leading up to the financial crisis was the increase in commercial paper issuance volume from 2004-2007. The 25-day moving average of the volume of commercial paper issuance, in millions, increased by nearly 2.5x from 2004 to October 2007. After the crash, volume disappeared and ultimately hit a low at […]

Sales Estimates Still Falling


Over the past six months, only one out 24 global industries has experienced a positive tailwind to its FY1 sales estimate. That lone industry: diversified financials. Diversified financials FY1 sales estimate has increased by 3.5%, on an equal-weighted, USD basis, over the past six months. The other 23 industries have all seen its FY1 sales estimate fall […]

Not All Active Management Is Created Equal

Investors inherently know that not all active managers are created equal and for most mutual funds the higher fee they charge eat away any potential performance advantage they have over a passive index.  In these instances, investing in a low cost index is a much better investment than investing in an under delivering mutual fund. However, if an investor […]

Dissecting Health Care Performance (Part 2)


Yesterday, we looked at developed market health care performance. Today, let’s take a closer look at emerging market health care performance. The top performing health care sub-industry (on an equal-weighted, USD basis) in the EM this year has been health care distributors, followed by pharmaceuticals, up 37% and 30% respectively. Managed health care, which has […]

Dissecting Health Care Performance (Part 1)


Yesterday we noted how the health care sector is the best performing sector (in USD, and equal-weighted terms) in both the developed markets and the emerging markets. Today, we thought we would take a closer look at which sub-industries are driving developed market health care performance and tomorrow we will look at which sub-industries are driving […]

Transports Approaching Correction Territory


Off the March 2009 lows and through the first quarter of this year, the DJ Transportation Index outperformed the DJIA, S&P 500, S&P Small Cap 600, and S&P Mid Cap 400. However, since the end of the first quarter transports have taken a bit of a beating and that continued today as it fell about 2%. The DJ […]

Health Care Remains In Leadership


The health care sector, which has been the bull market leader over the past four years, continues to shine in 2015 and this is especially true in the emerging markets. Year-to-date, on an equal-weighted, USD basis, health care is over 12% higher in the developed markets. Information technology (+8.95%) and consumer discretionary (6.98%) round out […]

The Yen Is At The Most Undervalued Level In Nearly 30 Years


With the recent weakness in the Japanese yen over the last several days, the yen has fallen to nearly a thirty year purchasing power parity low against the dollar. Our purchasing power parity model using CPI differentials currently shows a 31.59% undervalued level relative to the dollar. The last time the yen was this undervalued on a […]

Energy Costs For Households At 12 1/2 Year Low

Energy costs, as calculated by the household energy obligations ratio, have dropped to the lowest level since 3Q2002. Households only spent 4.02% of their disposable income on energy in the first quarter. The overall household obligations ratio remains relatively on tame at just 15.27% of the one’s disposable income. The household financial obligation ratio has […]