Crypto-Crash

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Bitcoin prices have corrected severely in the last 48 hours. The newsflow suggests investors have concerns about increased regulation in China and South Korea. No doubt these headlines have spooked investors, but I think there is something else at work. Over the last year, Bitcoin has increased 1000%, going from $1,000 to $10,000. And this […]

Happy New Year to Clients and Supporters!

Dear Stakeholders, We’d like to take this opportunity to thank you all for your ongoing support and attention and to wish you the very best for 2018! In the next year, we’ll continue to focus our data driven analysis on what we feel are the most important themes affecting the global financial markets, including: the […]

Taxes, Balance of Payments and the USD Paradox

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Investors were finally treated yesterday to some of the most important compromise provisions to come out of the House-Senate conference on the Tax Cuts and Jobs Act. Among them were: 21% corporate rate Reduction of the top wage rate to 37% 20% deduction on pass-through income Full corporate expensing of capital investments for the next […]

Earnings Don’t Matter!

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Our long-time readers are familiar with the work of Professor Baruch Lev of the NYU Stern School of Business, whose research forms the basis for the Knowledge Leaders investment strategy. In his decades-long study of financial records, Lev first discovered a link between a firm’s knowledge capital and its subsequent stock performance, ultimately identifying a […]

The Low Level of the VIX Isn’t a Mystery

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The drop in the VIX to ultra-low levels in 2017 has been a point of consternation for market participants and largely misunderstood. Some market participants view the low level of the VIX as an indication of excessively positive sentiment among investors and thus a contrary indicator for the general direction of stock prices. But, the […]