Rotation Strategies: Earnings Prospects and Fed’s Tightening Cycle
During times of accommodative monetary policies when rates drop and earnings prospects shine, growth stocks usually outperform value stocks. In a basic valuation model of discounting future earnings (especially for growth-oriented companies), value-oriented stocks...American Leadership and Global Insecurity: Market Assessment
In security conferences around the world, speakers have been describing the rising threats and the rising level of insecurity, while at the same time wondering where the American leadership has been. The violent and chaotic situation in Syria could replicate itself in...Corporate Bonds, Excess Cash, and Market Yields: Is there an Equities Link?
In the recent market turmoil, corporate bonds seemed able to sustain their values. Could we assume that in a future market turmoil they will continue showing signs of immunity? Last two times we saw an equities correction (summer of 2015 and early 2016), anxiety...Usual Suspects and Unusual Narratives: Markets Search for Direction but Natura No Facit Saltus
Should we always buy the dip? The strategy has worked over a number of years. Is this time different? The blame over the recent market turmoil has identified some usual suspects: those who shorted volatility got burned; those who used too much leverage got burned;...Sign Up for Our Publications
