Archive | June, 2015

Are Growth Counter-Cylicals Just Taking a Rest?


While we spend a great deal of time evaluating how efficiently companies invest in intellectual property, we also find it useful to take a step back and get a perspective on general trends in the world’s major markets.  In order to do that, we have created ‘baskets’ of sectors for each region based on the […]

Putting Recent Equity Momentum Weakness In Context


In the tables below, we look at various price momentum indicators for MSCI World Index sorted by sector. What is most obvious is, from a relative sector point of view, momentum in the health care sector remains strong and momentum in the energy sector remains weak. What is more surprising is how the recent weak momentum […]

S&P 500 Suffers First 2% Down Day Since End of 2014

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Today was no doubt a risk off day for the markets. There was persistent selling pressure in stocks worldwide with the S&P 500 down 2.09%, but international indexes down quite a bit more. Given that today was the first 2% down day since October 9th, 2014 and July 31st, 2014 before that, we thought we’d highlight the utter […]

Is The Decline in the Euro Over?


A little over a year ago, we noted a curious– and generous– divergence in the relationship between the  euro and the Eurozone-U.S. interest rate differential (see here).  The large gap between the two historically close variables has narrowed considerably since a year ago, syncing back up this spring: Has the euro stabilized here?  Will it […]

More Stocks Than You Might Guess Are In A Correction


A correction is generally defined as any stock that is at least 10% off a recent high. If we look at a price performance over the past 200-days, 42% of all the stocks in the MSCI World Index are in a correction. Higher than you might have thought, right? Regionally, MSCI Pacific has the greatest percentage […]

The Market Continues to Vote for Japan Over Europe


Despite Japanese stocks outperforming European stocks by 7% YTD and 14% over the last year, the investment community has continued to basically ignore Japan in the commentary we read. But, for those who have been overweight Japan it has been a good ride. The MSCI Japan is up over 9% YTD and 5% over the […]

US GDP Growth Over Time


When the first estimate for US GDP was release, we showed how the long-term growth rate of the US economy has been steadily falling for decades. We highlighted this by looking at the 10-year annualized percentage change in nominal and real GDP. With the final estimate for 1Q GDP release this morning, we thought we […]