Blog

What Does The Average Stock Look Like? November 12, 2013

By Knowledge Leaders Team in Uncategorized

We find that it is useful at times to step back from individual stock analysis and compare sectors to understand what are the the dynamics going on in the stock market. When we look at sectors, we look at it from an ”equal-weighted” basis rather than ”market-cap” basis.

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Risk is On as France Gets Downgraded November 08, 2013

By Knowledge Leaders Team in Uncategorized

We find it interesting that on a day when the French government gets its credit rating downgraded the spread between French OATs and US Treasury Bonds widens to the highest level since April 2010, with OATs now yielding 52bps less than USTs. This spread can be viewed as a measure of investor risk seeking behavior.

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Taper Or No Taper? November 08, 2013

By Knowledge Leaders Team in Uncategorized

On the back of the ”strong” jobs report the market is sending some pretty mixed signals when it comes the implied policy path. Gold, treasuries and the USD are all saying ”taper” while stocks are proclaiming more QE is on the way.

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Tesla Down a Cool 29% from Its Peak So Far November 07, 2013

By Knowledge Leaders Team in Uncategorized

In what must win the award for this year’s most speculative stock, Tesla finished the day today down 8.6% and is just shy of 30% off its all-time high. And this on a day when the speculators were fairly revved up, as is evidenced by Twitter’s mere 73% pop from the IPO price.

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Merck’s Orderly Liquidation November 07, 2013

By Knowledge Leaders Team in Uncategorized

We received a question today as to why we don’t like Merck among the major pharma companies.  In short, the stock shows all the markings of an orderly liquidation.  We measure the daily percent change and standard deviation of those price changes everyday.

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