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The Path to Average Equity Returns in the 2020s is Challenged June 12, 2020

By Bryce Coward, CFA in Markets, Uncategorized

The returns of the 2009-2020 bull market were nothing short of extraordinary. From the 2009 low in the S&P 500 to the 2020 high, stocks gained a massive 488%, or nearly 18% on an annualized basis. This compares to an average nominal price return for…

There is Nothing Normal About the US Savings Rate May 29, 2020

By Bryce Coward, CFA in Economy, Markets, Portfolio Management

Even as the stock market chugs up the wall of worry, we were reminded today that the economic fundamentals remain mired in simply unprecedented territory. As you can see in the first chart below, April saw both the largest increase ever in personal income (blue…

Keep an Eye on the Yuan & Corporate Spreads May 28, 2020

By Steven Vannelli, CFA in Economy, Markets

Since the March 23, 2020 low, when the Federal Reserve announced basically unlimited liquidity via a variety of programs, corporate spreads have narrowed, and the stock market has risen substantially. In the chart below, I overlay US investment grade spreads over the S&P 500 Index….

Here’s 5 Reasons Why Gold Miners Have Massive Outperformance in the Tank May 15, 2020

By Bryce Coward, CFA in Economy, Knowledge Leaders, Portfolio Management

As I write this note on a dreary Friday afternoon from Boulder, CO I am reminded of my town’s origin. Its first non-native settlers established the town 1858 as a base camp for gold and silver miners. Nestled literally at the foot of the Rockies,…

Here’s Where Friday’s Employment Report Could Really Disappoint May 05, 2020

By Bryce Coward, CFA in Economy

Given the surge in unemployment claims over the last month the US unemployment rate is expected to rise to 16% in April from just 4.4% in March. Shocking as that number is, we have no problem with that forecast. But for some reason economists surveyed…

If the Bear Market is Over, Why Are Commodities and Transports Underperforming? May 01, 2020

By Bryce Coward, CFA in Markets

As Steve highlighted yesterday, we are beginning to see some important divergences develop between the stock market and other data that suggest we are not out of the woods yet. Of course, this makes complete sense since next week we may learn of an unemployment…

Important Divergence Between Equities and High-Yield Credit April 30, 2020

By Steven Vannelli, CFA in Economy, Markets

While not 100% correlated, there tends to be a pretty good relationship between movements in the S&P 500 and credit spreads, both investment grade (IG) and high-yield (HY). As stocks sold off in February and March, credit spreads widened rapidly. And, then on March 23,…

Here’s Why 2/3rds of US Oil & Gas Companies May not Exist a Year from Now April 21, 2020

By Bryce Coward, CFA in Economy, Markets

Energy companies are facing a life or death moment in 2020 with the price of WTI crude oil falling to $13.64/barrel as of this writing. Indeed the collapse in energy prices combined with poor fundamentals leading into the COVID crisis make most of the oil…

Spotlight Naver: South Korea’s Top Search Engine Dominates with Web Cartoons March 25, 2020

By Knowledge Leaders Team in Knowledge Leaders

With 30 million daily users, South Korea’s top search engine is focused not on the desktop, but rather the phones in people’s pockets, cars, city streets and shops, aiming to connect people with each other, shopping and entertainment. To do so, the firm relies on…

Welcome to the Death Throes of 60:40 Diversification March 11, 2020

By Bryce Coward, CFA in Markets, Portfolio Management

Back in the good ole’ days of mid-January, asset allocators could look to long-duration US government bonds as a refuge for stormy weather. Those days are no longer. In recent weeks investors have panic bought into this supposed safety asset to a degree never before…

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The information listed on this blog is for example purposes only and should not be construed as the investment Advisor’s opinion or investment outlook. As of the most recent quarter end, the named companies may have been held by the investment Advisor. For full information including additional policies and full disclosures on the Advisor, please visit our website KnowledgeLeadersCapital.com.

An investor cannot invest directly in an index. Any reference to Index performance does not represent the performance of any investment product offered by Knowledge Leaders Capital, LLC. 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. The Index data is the property of Knowledge Leaders Capital, LLC, which has contracted with SolactiveAG to calculate and maintain the indexes.

The launch date of the Knowledge Leaders Knowledge Leaders Developed World Index (Bloomberg ticker KNLGX is 7/1/14 and the base date of the index calculation is 3/31/2000. The launch date of the Knowledge Leaders Emerging Markets Index (Bloomberg ticker KNLGEX) is 9/2/14 and the base date of the index calculation is 4/1/2005. The launch date of the Knowledge Leaders International Index (Bloomberg ticker KNLGINX) is 8/15/16 and the base date of the index calculation is 3/31/2000. The launch date of the Knowledge Leaders United States Index (Bloomberg ticker KNLGUSX) is 8/15/16 and the base date of the index calculation is 3/31/2000. The launch date of the Knowledge Leaders Developed World ADR Index (Bloomberg ticker KNLGAX) is 9/13/16 and the base date of the index calculation is 3/31/2000. The launch date of the Knowledge Leaders International ADR Index (Bloomberg ticker KNLGINAX) is 8/30/16 and the base date of the index calculation is 3/31/2000.

The returns of the Index prior to the launch date are based on applying the rules in effect as of the launch date retroactively to historical periods to and including the base date. Results are not based on an Index that was maintained in real time. The pre-inception performance results of the Index are hypothetical returns which have been compiled by Knowledge Leaders Capital. The performance results are based upon a hypothetical model. Hypothetical performance results may have inherent limitations, some of which are described below. No representation is being made that any account did or was likely to achieve profits or losses similar to those shown. One of the limitations of hypothetical performance results is that they are prepared with the benefit of hindsight. There are numerous other factors related to the markets in general or to the implementation of any specific trading strategy which cannot be fully accounted for in the preparation of hypothetical performance results and all of which can adversely affect actual trading results. These returns should not be considered as indicative of the skills of the investment adviser.To obtain additional index methodology and constituent components, please visit KnowledgeLeadersCapital.com.

Companies are selected for “Spotlights” based on high levels of innovation activities in their 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.