Blog

No Matter How You Slice It, Stocks Everywhere Are Just Downright Expensive, Especially in DM March 09, 2015

By Knowledge Leaders Team in Markets

It’s no secret that we think stocks are expensive. Indeed, over the last few months we’ve written extensively about what we think are high valuations for stocks everywhere.

The Strong USD Is Negatively Impacting US Trade March 06, 2015

By Knowledge Leaders Team in Economy

Exports have been a solid contributor to US GDP growth for the last few years, while consumption and residential investment have been more restrained. Recently, with consumption firming and likely to improve further from the tail-wind of lower oil prices, and exports faltering, it appears the drivers of the US economy are trading places.

A Technical Assessment of Analyst Ratings March 06, 2015

By Knowledge Leaders Team in Portfolio Management

Regular readers are aware of the place that point-and-figure technical analysis plays in our investment process (for more details on the methodology, including information on our proprietary modifications to the discipline, see here).

USD and Purchasing Power Parity March 06, 2015

By Knowledge Leaders Team in Economy

We mentioned yesterday that the US dollar is again breaking out and that tends to be negative for most stocks around the world. Today, we thought we would continue to look at US dollar strength. The nominal trade-weighted dollar index by major currencies is again very close to breaking out to 11+ year highs.

Putting The Recent Bond Market Selloff Into Historical Context – Hint It’s Rare! March 05, 2015

By Knowledge Leaders Team in News

The recent move higher in longer dated US treasury bonds has been sharp and fast and has caught plenty of people off guard. The 10-year bond yield has moved from 1.68% to 2.12% while the 30-year has moved from 2.25% to 2.72% in a little over a month.

When $75 Billion In Intangible Capital Goes Unnoticed March 05, 2015

By Knowledge Leaders Team in Knowledge Leaders

One of the flagship principles of our investment process is an investment in intangible capital should be treated the same from an accounting standpoint as an investment in physical capital . Said differently, we are firm believers in the symmetry principle for capital accounting.

The Dollar Is Breaking Out Again And What That Means For Stocks March 04, 2015

By Knowledge Leaders Team in Markets

The ICE US dollar index looks to have broken out of what has been a rather short-lived consolidation after the massive move since the middle of 2014. If this is in fact the start of another round of dollar strength, then stock investors should carefully consider where in the world to deploy cash into stocks.

Energy And Utilities Have Been The Most Volatile Sectors March 04, 2015

By Knowledge Leaders Team in Markets

Volatility, as measured by the standard deviation of the the daily percent change in stock prices, has fallen since the beginning of the year in the MSCI World Index. The one month moving average of volatility has dropped to 0.54 from a high 0.86 on January 23rd.

Where in the World is the Growth? EM Asia, and That’s It! March 04, 2015

By Knowledge Leaders Team in Markets

It’s no secret that growth estimates for companies all over the world have been weak recently. We’re written about the topic here and here in just the last week. What remains striking, though, is that six years into a recovery top and bottom line growth expectations remain weak.

Sentix Euro Break Up Index Remains Elevated March 03, 2015

By Knowledge Leaders Team in Markets

The odds of a Eurozone break-up remained unchanged at 38% in the most recent Sentix survey, conducted over the last three days of February– a level not seen consistently since 2012 and up considerably from last July’s 7% reading.

Disclosures

The information presented here is for informational purposes only and is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. Hyperlinks may be included in this message that provide direct access to other internet resources, including web sites. While we believe these links are to reliable sources, Knowledge Leaders Capital (“KLC”) has no control over the accuracy or content of information contained on these sites. Although we make every effort to ensure such links are accurate, up to date and relevant, we have no control over pages maintained by external providers. The views expressed by these external providers on their own web pages or on external sites they link to are not necessarily those of Knowledge Leaders Capital.

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

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.