Blog

Spotlight Shimano: Spinning the Future November 29, 2021

By Knowledge Leaders Team in Knowledge Leaders

Bicycle components leader Shimano was founded in 1921, when 26-year-old Shozaburo Shimano borrowed a single lathe and set up a small ironworks shop in Osaka, Japan. Deciding they were the most complex component to produce, Shimano began by making bicycle freewheels, those round spiked wheels…

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Have Option Players Taken the Week Off? November 23, 2021

By Steven Vannelli, CFA in Markets

For years preceding the COVID-19 pandemic, call option volume averaged about 15% of daily NYSE volume. This was a normal level of speculation that investors were used to. Then, as the chart above illustrates, in 2020 call buying just exploded. As of this writing the…

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Spotlight ALS: Getting Under the Surface of Global Testing November 23, 2021

By Knowledge Leaders Team in Knowledge Leaders

Recognized globally as one of the largest analytical test, measurement and inspection service providers, Australia’s ALS conducts environmental monitoring, food and pharmaceutical quality assurance, mining, minerals and commodities certification, and equipment maintenance. For example, ALS’s labs perform the analysis that identifies Salmonella and Listeria outbreaks…

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International Stocks Could be Ripe for a Catch-Up Trade November 19, 2021

By Bryce Coward, CFA in Markets

A definite feature of the last decade has been the persistent underperformance of European and Asian stocks vs US stocks. Foreign stocks have underperformed with such consistency that it’s almost expected at this point. Nonetheless, we may be at a tactical point where a mean…

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Does the Fed Have a Brewing Velocity Problem? November 17, 2021

By Steven Vannelli, CFA in Economy

A basic tautology that economists consider when thinking about monetary policy is the velocity of money. MV=PQ translates into Money*Velocity=Price*Quantity. Of course, price*quantity is nominal GDP while “M” is the money supply (for example, M2) while “V” is velocity, or the number of times the…

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Here’s Why the Fed Could Stay Easy for a LOOONG Time November 05, 2021

By Bryce Coward, CFA in Economy, Markets

This week Jerome Powell tossed the market a bone by hinting that the Fed would be patient in raising short-term interest rates due to the continued slack in the US labor market and inflation that would likely be “transitory”. Yet, today, the unemployment rate dropped…

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Special Report: Seasonal Tailwinds November 01, 2021

By Steven Vannelli, CFA in Markets, Portfolio Management

We find compelling evidence that seasonal factors exist, historically leading November and December to be the highest 2-month combined returns all year. In our allocation portfolios, we have increased our equity exposure significantly in an effort to capitalize on these year-end trends. Please find below…

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The Epitome of Financial Repression in 2 Charts October 22, 2021

By Bryce Coward, CFA in Markets

By now investors are quite aware of the consequences of financial repression via negative real interest rate policies. Since interest rates on “risk free” government debt are too low to even compensate for inflation, it pushes investors out the risk spectrum in an effort to…

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Japan’s Reopening Trade October 18, 2021

By Steven Vannelli, CFA in Economy, Markets

In this quarter’s strategy package, we share our analysis on Japan’s Reopening Trade. In the full slide presentation, we cover the following: -Japan seems to have crushed the COVID-19 virus (for now at least) with daily new cases under 400/day. Lockdowns are over and the…

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