Highlights: Equities were again mixed on the day with Asia and the North America up and Europe down a bit US stocks finished up .5% as a small mid-day selloff was erased in the afternoon with stocks finishing on the highs Health Care, Tech and…
Read MoreHighlights: Equities continued yesterday’s late-day wrought throughout the Asian session and into Europe US stocks finished up .5%, but another afternoon selloff erased much of an earlier gain Tech was the standout today, followed by Health Care and Industrial as Energy, Telecom, and Utilities brought…
Read MoreAfter the recent correction, many investors are asking how to respond in their portfolios. I’m recommending clients hold on to equity exposure, even consider increasing it. Below, I run through my case. Reason 1: Valuations For the first time since 1956, the dividend yield on…
Read MoreWe’ve been highlighting the carnage in both the developed markets and emerging markets recently, but it’s important to point that not all stocks are suffering as badly as the headline indexes. Our group of global Knowledge Leaders is faring considerably better than the whole, especially…
Read MoreMany investors in ETFs that focus on developed market stocks may be more exposed to slowing Chinese and emerging market growth than they realize. China and other emerging markets have become a larger and larger driver of global growth, but their slowing growth rates affect…
Read MoreLast week, Steve Vannelli was a guest on Killer Innovations Radio, a show about ideas, creativity and innovation — where leading innovators discuss how to go from ideas to breakthroughs. He discussed a few companies that make the cut as Knowledge Leaders, some on their way out…
Read MoreAbout two weeks ago we highlighted the washout in EM stocks and mentioned that they will be interesting soon, but not quite yet. Given the continued weakness in EM stocks, we thought we’d provide an update. In summary, EM stocks have continued to struggle with…
Read MoreChina has seen better days. Its economy, while far from falling off a cliff, is in the midst of a generational rebalancing act whereby it must simultaneously cut the rate of investment growth and raise the rate of consumption growth. If it fails to do…
Read MoreAmid the recent market turmoil we thought we’d provide readers an update on the performance of our Knowledge Leaders Indexes. YTD, both the DM and EM indexes continue to outperform their benchmarks. As of yesterday’s close, the Gavekal Knowledge Leaders Developed World Total Return Index…
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With the economic weakness in China permeating Asia and EMs generally, we should not be at all surprised to see copper making a new cycle low, and it is (chart 1). But Dr. Copper is hardly alone in providing a dis-inflationary signal. Indeed the broad-based weakness…
Read MoreWe’re pleased to present our first quarterly commentary on the Gavekal Knowledge Leaders Indexes, the intellectual property behind our new strategic beta products. As a data driven firm, we spend significant time working with data, from sourcing it to scrubbing it to identify Knowledge Leaders,…
Read MoreYesterday we highlighted the stealth correction that has taken place and also noted that from a technical perspective Knowledge Leaders - the world’s most innovative companies - have been more insulated than the rest. To further illustrate that last point we show below the most…
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The stealth correction that has taken place over the last few months has not affected stocks equally. Indeed, the whole point of the stealth correction is that the majority of stocks get hit hard while a few more resilient stocks just seem to deflect that negative…
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This last week has seen some volatility in markets thanks to China and Greece and as we noted earlier, 54% of EM stocks are in a bear market. Yet, despite heightened volatility in both the emerging and developed markets, Knowledge Leaders continue to perform well….
Read MoreA rich academic history suggests equity returns can be explained by risk exposures, or factors. In our first white paper, we identified the Knowledge Effect, the tendency of highly innovative companies to experience excess returns. In this second report, we detail how we create the…
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