Blog

Weak Stock Market Closes Surge to Highest Level Since 2012 January 15, 2015

By Knowledge Leaders Team in Markets

While the intraday performance trend of the stock market isn’t everything, it often gives clues to possible directional changes in the overall trend of the market. One of the ways we measure the intraday trend of the market is to count the number of weak closes over a period of time.

Stock Market Leadership on a Country Basis Has Never Been Narrower January 15, 2015

By Knowledge Leaders Team in Markets

The United States stock market has been the only game in town. The US the only major developed country to have outperformed the MSCI World Index over the last year, joined only by the much smaller markets of New Zealand and Hong Kong.

To Hedge or Not To Hedge January 15, 2015

By Knowledge Leaders Team in Markets

Today the Swiss National Bank removed the CHF/Euro peg and the Swiss Franc shot up relative to the USD. In the chart below we can see the almost 15% drop in the value of the USD relative to the Swiss Franc.

Navigating High Stock Valuations in a Deflationary World January 14, 2015

By Knowledge Leaders Team in Economy

As we highlighted yesterday, stock valuations jumped again in December to another cycle high. As the first two charts show, the cyclically adjusted P/E multiple has only been higher on several occasions and the median stock is trading at a record price to cash flow multiple as far back as we have data.

Despite Commodity Rout, Emerging Markets Are Outperforming YTD January 14, 2015

By Knowledge Leaders Team in Markets

The MSCI All Country World index (MSCI ACWI) is comprised of two major sub-indexes: the MSCI World Index (80%) and the MSCI Emerging Markets index (20%). On a year to date basis, measuring average performance in USD, the best performing group of companies are from Turkey and the worst are form Colombia.

Asset Allocation: It’s Still All About The Fed January 13, 2015

By Knowledge Leaders Team in Economy

While plans change, the Federal Reserve has made it clear that it intends to begin raising interest rates in 2015. It spent most of 2014 laying the groundwork, managing the taper, and in 2015 it will continue to make preparations for lift-off.

Stock Valuations Jumped Again in December January 13, 2015

By Knowledge Leaders Team in Markets

By almost any measure stocks are pricey relative to history. We’ll save the theoretical debate about whether such high valuations are justified for another post, and will instead illustrate with charts just how far valuations have come over the last five years. The Shiller P/E just made a new cycle high in December of 27.1x.

Japan Joins Germany and Switzerland With Negative Yields Out to at Least 5 Years January 13, 2015

By Knowledge Leaders Team in Markets

While negative five-year yields in Germany and Switzerland has been a feature for some time, Japanese yields have up until now resisted the temptation to go negative. Today, however, the Japanese 6-year yield crossed the line into the realm of negative yields.

One Simple Chart Showing Why Declining Bond Yields Matter for Equity Allocation January 13, 2015

By Knowledge Leaders Team in Portfolio Management

The story of 2014, and so far in 2015, is that yields have continued to fall contrary to most economists’ expectations. This matters to equity investors because the appropriate asset allocation in a falling yield environment is much different than the best allocation in a rising yield environment.

Copper Slumps to Lowest Level Since October 2009 January 12, 2015

By Knowledge Leaders Team in News

While the collapse in the price of oil has grabbed the headlines, the weakness in the price of copper continues to pique our attention.

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