Market Signals, the Economic Cycle, and Enthymemes: Which Sectors Could Benefit?
We have written before that the financial stress index produced by the St. Louis Fed is a very reliable indicator regarding potential dark clouds in the economic and financial horizons. As can be seen in the graph below (updated as of the end of July), the index...Cheapening the Currency: The Wrong Way Forward
In the last few commentaries we have noted that while equity markets may be stretched, there might still be room to grow given the current macro-circumstances, corporate earnings, and business sentiment. In this week’s commentary we would let some graphs do the...World Markets, Bank Debt, and Diversification: Earnings and Other Drivers
As many analysts have pointed out lately, the equity markets at the current levels are stretched, but probably not over-stretched. Global equity correlations have been falling this year (from their high of 77% in 2009 to around 39% in 2017), providing some...Substituting for the Credit Cycle: An Optimistic Perspective
There is almost no doubt that the extraordinary measures taken by the central banks around the world over the last several years uplifted equities, lowered cost of capital, increased corporate prospects and in general created a market upswing at a time when global...Sign Up for Our Publications
