Archive | September, 2014

World Inflation Creeps Lower Again

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Last month we mentioned how world inflation had reached a 56-month low. Well, the latest data (through August) shows world inflation, by our simple average of 33 countries year-over-year change in CPI, is creeping lower again. The latest reading stands at 1.65%.

Health Care Is Strong But Is Feeling Lonely

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The health care sector has undeniably been the stock market leader over the past four years. Looking at the Developed Markets (DM) and Emerging Markets (EM) together, the health care sector has returned 122.4% over the past four years. Besting, the second place consumer discretionary sector by over 22%.

Q-Ratio At The Highest Level Since December 2000

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The Q-ratio, which is simply the equity market value of nonfarm, nonfinancial businesses divided by the net worth of those businesses, is at it’s highest level since December 2000.  Since 1945, the average level is 0.70. The current reading is over 1 standard deviation above the nearly 70-year average.