With the falling Euro and the recent launch of QE in Europe, European equity markets have come into the spotlight for many investors. Today, we wanted to take a look at European equity valuations in an absolute sense as well as on a relative basis to its developed market peers.
Read MoreOn March 4th we wrote in The Dollar Is Breaking Out Again And What It Means For Stocks that ”for a variety of cyclical and structural reasons…stocks in North America tend to be the relative beneficiary of USD strength while stocks in other regions generally, but not always, tend to underperform.
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With the release of (the plunging) producer price index today, we thought we would take a look at some of our latest PPI and trade price charts (i.e. February data point) that have been released in the last two days.
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The recent focus of the financial world (including for us) has been on the massive currency moves going on in the forex markets. By this point, everyone and their grandma knows that the US dollar has been on an explosive move higher.
Read MoreAccording to Fed Fund futures, the market currently expects about 2 rate hikes by December 2015 (assuming the Fed raises rates by 25 basis points each time). Fed Funds futures is pricing the Fed Funds Rate at 54 basis points by December 2015.
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Surprising as it may seem, only 12% of stocks in the MSCI World Index trade for less than 1x book value. This is compared to more than 30% in 2012 and nearly 50% in 2009. How the times have changed!
Read MoreThe recent (more than 10% QoQ) slide in the euro is a two-standard deviation event, the likes of which we have not seen since 2010. And, as we can see in the chart above, the only time the euro has declined more versus the USD was back in 2008.
Read MoreThe extremely well greased PR machine promoting passively managed index funds as the best thing since sliced bread has gone to great effort to convince the investing public that money cannot be made through active strategies.
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MSCI World equities are off to a rough start for the month, with 8 out of 10 sectors in negative territory so far: The percentage of stocks above their respective moving averages has fallen: And the number of stocks making new lows has jumped to 33% from 0% for longer time horizons: Whether this pullback
Read MoreAs we never tire of pointing out, the massive levels of intangible assets on multinational corporations’ balance sheets is one the most overlooked drivers of profitability by the investor community.
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