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Obituary: Yield Curve Control January 13, 2023

By Tom Nemechek in Economy

Overnight, traders pressed the Bank of Japan again on its Yield Curve Control (YCC). Japanese Government Bonds (JGBs) traded up to 55bps, exceeding the 50bps YCC. This prompted the Bank of Japan (BoJ) to intervene and hammer the rate back down to 50bps. At the…

December CPI Report Makes Next Fed Moves More Uncertain January 12, 2023

By Brian Clark in Economy

The December U.S. Bureau of Labor Statistics’ Consumer Price Index came in exactly as expected according to Bloomberg’s survey of economists. Headline CPI came in at -0.1% month over month and 6.5% year over year, and Core (CPI Ex Food and Energy) came in at…

Balmy European Winter Helps Industrial Production January 10, 2023

By Austin Mann in Economy

With winter not fully upon us, European industrial production has benefitted from lower energy prices. The mild weather has led economists to predict less dire economic scenarios, where recession fears have receded. November’s industrial production highlights the economic benefit realized from this winter’s mild weather….

A Goldilocks Job Report January 09, 2023

By Steven Vannelli, CFA in Economy, Markets

As the market continues to rally on Monday, we can’t help but ask ourselves what data nugget might we have missed from last Friday’s data? Let’s start with the more difficult data: the employment report. On the surface, the report showed a gain of 223,000…

Quarterly Strategy Report: Global Equity Opportunities January 03, 2023

By Steven Vannelli, CFA in Knowledge Leaders, Markets, Portfolio Management

In our Quarterly Strategy Report, we illustrate the relative attractiveness of select developed international sectors. Prefer to download this presentation in PDF? Please click here. 1. Summary -Monetary policy is considerably more restrictive than many perceive. The San Francisco Federal Reserve has calculated a “Proxy Rate” that…

Inversion December 20, 2022

By Steven Vannelli, CFA in Economy, Markets

In a recent San Francisco Federal Reserve Publication titled “Monetary Policy Stance is Tighter Than Fed Funds Rate,” the authors argue that the “all in” policy rate is actually higher than the Fed Funds rate would suggest. They open: “The Federal Reserve’s use of forward…

Spotlight Akamai: Applying Mathematics to Internet Performance Since 1999 December 16, 2022

By Knowledge Leaders Team in Knowledge Leaders

Akamai Technologies has deployed the most pervasive, highly distributed content delivery network in the world. With about 345,000 servers in about 135 countries, the Akamai Edge platform delivers and protects content for the majority of the major media, software and cloud computing companies operating today….

That Was a Strong Jobs Report? December 06, 2022

By Steven Vannelli, CFA in Economy

While many seemed to focus on the basics of the employment report like average hourly earnings (which don’t take into consideration industry mix shifts among the employed) and the payroll job beat for the month, there is one very important variable that revealed the weakness…

Does the Inflation Risk Premium Decline Signal Lower Commodity Prices? November 28, 2022

By Steven Vannelli, CFA in Economy, Markets

There are many ways to decompose the bond market to identify the component pieces to infer what the market is pricing in. The nominal long US Treasury bond is a function of two things: 1) the average expected future nominal short-term interest rate, and 2)…

Steve Vannelli Interview on ARK Invest’s “For Your Innovation” Podcast November 17, 2022

By Knowledge Leaders Team in News

After our recent quarterly report, “Has Innovation Bottomed?” Knowledge Leaders Capital CEO and CIO Steven Vannelli, CFA, was invited to be a guest on ARK Invest’s For Your Innovation Podcast. In the episode below, Steve and ARK Invest’s Renato Leggi, CFA, CAIA, discuss not only…

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Any reference to Index performance does not represent the performance of any investment product offered by Knowledge Leaders Capital, LLC. An investor cannot invest directly in an index. The performance of client account may vary from the Index performance. Index returns shown are not reflective of actual investor performance nor do they reflect fees and expenses applicable to investing.

Companies are selected for “Spotlights” based on high levels of innovation activities in their respective industries and illustrate innovation being employed across all sectors and geographies. Spotlight selection is separate from stock selection by the investment team. Spotlights are not necessarily representative of investment opportunities and can be selected regardless of investment performance or inclusion as a KLC holding.