Blog

Don’t Be Fooled: Counter-Cyclical Stocks Still Outperforming March 03, 2015

By Knowledge Leaders Team in Markets

This year, especially in February, there has been something of a cyclical bounce in the developed country stock markets. Since the beginning of the year, counter-cyclical stocks have underperformed cyclical stocks by 75 basis points in the MSCI World Index.

Changes in EPS Estimates Have Been the Driver of Stock Prices Recently March 03, 2015

By Knowledge Leaders Team in Markets

Regular readers will know that we often measure the influence of certain fundamental and macrofactors on stocks. The way we do this is to measure the correlation between the factor in question (with the individual readings broken into deciles) and the market performance over various time periods.

Import And Export Prices Are Tumbling Downward Worldwide March 02, 2015

By Knowledge Leaders Team in News

World import and export prices finished 2014 with the largest year-over-year decline since 2009 according to the CPB world trade monitor. Export prices declined by 9.2% YoY% and import prices declined by 8.8%. No area in the world escaped the deflation in trade prices as the decline in prices was broad based.

On the Long Bond and Why the Widow Maker is Alive and Well February 27, 2015

By Knowledge Leaders Team in Economy

Perhaps one of the most important questions investors need to answer today is whether we’ve seen the low in the long bonds yields or whether the trend lower is firmly intact.

US CPI Makes The Rare Plunge Into Negative Territory February 26, 2015

By Knowledge Leaders Team in Economy

While we recognize that the negative year-over-year change in the US CPI may soon reverse given gas prices have risen by nearly 30 cents, we wanted to highlight how rare a negative year-over-year print is in the US.

Pharmaceuticals: Value WIthin The Healthcare Industry February 26, 2015

By Knowledge Leaders Team in Markets

The heatlhcare sector has been the leadership group over the last five years in all geographies of the MSCI World Index. The most well known industries within the healthcare sector are the biotech and pharmaceutical industry.

Rise in Spanish CDS Outpaces Greece February 25, 2015

By Knowledge Leaders Team in Markets

Unsurprisingly, the cost of insurance against Greek default (as evidenced by 10-year credit default swaps) has risen since the beginning of the year.

The Pop In US Mortgage Apps Was Fun While It Lasted February 25, 2015

By Knowledge Leaders Team in Economy

After starting the year off with a bang (thanks to refinancing activity), US mortgage applications are tumbling back towards the depressed 2014 levels. Mortgage apps fell for the third straight week even as the purchase index rose for the first time in seven weeks.

Market Breadth Finally Confirms a New High in World Stocks February 25, 2015

By Knowledge Leaders Team in Markets

It’s gone somewhat under the radar that the MSCI World Index is now sitting at a new all-time high. That is usually a good sign for the market, especially when accompanied by improving market breadth.

Putting Declining Sales Estimates In Context February 24, 2015

By Knowledge Leaders Team in Markets

We track analyst estimates in a variety of ways. We look at growth rate expectations over the next four years. We also measure the percent change in the level of USD estimates across various time frames. We also track the difference in growth rates now versus three months ago.

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.