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,...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...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...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...Sector Focus: Financials
The financial sector is vast; we can only give a high-level overview. We will cover US equity markets, international bonds, US market managers, world equities markets, derivatives markets, banks, and insurance companies. At the end of this piece, we will comment on...Sign Up for Our Publications
