Leverage, Valuations, and Earnings: Algorithmic Complexities, Monetary Gamesmanship, and Capital Protection
This year’s market gyrations should be viewed under the microscope of leverage. When we do that as the first figure shows below, then we can possibly start comprehending that in an environment of rising volatility, political instability, and geopolitical tensions,...
Weekly Market Update
Market Action Global equities climbed this week despite fluctuating sentiment about the prospects of a trade war between the US and China and heightened geopolitical tension over Syria. Oil prices rose to their highest levels since 2014. News regarding trade frictions...
Sector Focus: Industrials
This week we continue our review of the different sectors within the S&P and in the commentary below we discuss the industrial sector. Overall, the industrial sector globally is healthy and growing at a moderate pace. We will look at this a bit more closely, and...
Weekly Market Update
Market Action This week has been challenging for investors as they struggle to grapple with the impact of trade threats and counter-threats between the US and China. China responded to the US tariff announcement on steel imports by announcing its own tariff of up to...
Is the Market Turning? Fundamental Changes and Cross-Determination
In this week’s commentary, we would like to discuss our perspective for the short-term based on some changes we have been observing in the market. However, before we show this - mainly through some graphs – allow us to clarify the cross-determination part of the...
Weekly Market Update
Market Action China’s yuan-denominated crude-oil futures surged on their debut Monday. Beijing hopes the new market will eventually give the country an oil benchmark to rival WTI in the U.S. and Brent Crude in Europe. China is the world’s biggest importer of oil after...
CROSSROADS
Here are the biggest issues to watch around the globe over the coming month: Europe: Responding to Russia The use of a nerve agent, known as Novichok, in an attempt to murder former KGB agent Sergei Skripal in Salisbury, England, resulted in Prime Minister Theresa May...
Weekly Market Update
Market Action Stocks globally suffered steep losses for the week against a turbulent geopolitical backdrop including growing trade frictions between the United States and China. The declines took most of the indexes back into negative territory for the year to date....
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...
Weekly Market Update
Market Action Stocks moved lower on the week as volatility remained elevated. Last Friday marked the nine-year anniversary of the current bull market for U.S. stocks, which have logged more than 108 months without posting a decline of 20% that marks a retreat into...
