Markets

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

Posted 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.

Stock Valuations Jumped Again in December January 13, 2015

Posted 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

Posted 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.

Estimates Revisions: Winners and Losers January 12, 2015

Posted by Knowledge Leaders Team in Markets

With earnings season on the horizon, we thought we’d take a quick tour of estimates around the globe. Positive revisions to sales and earnings estimates in developed countries have hovered around 20% to 25%, respectively, over one-, three-, and six-month time periods.

Central Bank EUR Reserves Plunge January 09, 2015

Posted by Knowledge Leaders Team in Markets

IMF data released earlier this week revealed the largest ever quarterly decline in reserves held in euros.

Down Gaps On the Rise January 08, 2015

Posted by Knowledge Leaders Team in Markets

As one measure of market volatility, we calculate the cumulative number of stocks in the MSCI World Index that open at least 2% higher (or lower) than the previous close over a 65-day time period. Extremes in the number of gaps often occur in conjunction with inflection points in the market.

Health Care Stocks Pick Up in 2015 Where They Left Off in 2014 January 05, 2015

Posted by Knowledge Leaders Team in Markets

Across two of the three regions in the MSCI World Index, the health care sector has been the best performer over the last year. In North America, measured in USD, health care stocks are up 29.13% over the last year, while they were up 5.96% in Europe and 2.53% in Asia/Pacific.

4 Sectors That May Be Worth Avoiding December 19, 2014

Posted by Knowledge Leaders Team in Markets

Success in investing can many times come down to avoiding the major losers rather than always hitting home runs with one’s winners. Correct sector allocation plays an important role in sidestepping potential landmines that out there in the market.

Stock Volatility Has Picked Up…A Little December 18, 2014

Posted by Knowledge Leaders Team in Markets

We have had a small pickup in volatility in the equity markets since October.

The Median Stock Is Once Again Negative YTD December 16, 2014

Posted by Knowledge Leaders Team in Markets

The median year-to-date performance in the MSCI World Index with two weeks of trading left is -1%. The median stock was up 20% at this point last year and was up 13% at this point in 2012. The developed country with the worst median performance YTD is MSCI Portugal. The median stock is down 35%.

9 Out Of 10 Energy Stocks In The Developed World Are In A Bear Market December 16, 2014

Posted by Knowledge Leaders Team in Markets

The MSCI World Index is only about 6% of it’s 200-day high as of the close yesterday. However, 55% of the stocks in the index are down at least 10% and 30% of the stocks in the index are currently in a bear market (down at least 20%).

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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.