Markets

Europe is Not Japan: Expensive Financial Stocks may not Rally Hard with QE January 23, 2015

Posted by Knowledge Leaders Team in Markets

Since the ECB announced its open ended QE program we have seen numerous parallels being drawn with Japan’s amped-up QE program announced in April of 2013, but telegraphed in late 2012. One of those parallels is that like Japanese financial stocks, Europe’s financial stocks should experience a sharp rally in the coming months.

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In Case You Missed It… January 22, 2015

Posted by Knowledge Leaders Team in Markets

The EUR is trading at levels not seen in over a decade, in the wake of the ECB’s big QE announcement today.

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Swiss Yield Curve Is Negative Out To 10 Years January 22, 2015

Posted by Knowledge Leaders Team in Markets

Has any government debt market ever had such a negative yield curve as Switzerland? One-year Swiss government bonds are currently ”yielding” -114 basis points. One week ago, one-year bonds were at -38 basis points and one month ago one-year bonds were at -23 basis points.  Astonishingly, 10-year Swiss government bonds are ”yielding” -20 basis points.

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VDAX Set to Rise? January 21, 2015

Posted by Knowledge Leaders Team in Markets

In recent history, each time the EUR has fallen relative to the dollar, the implied volatility of the German DAX has risen– sometimes rather sharply.

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When The Lead Stock Stumbles January 21, 2015

Posted by Knowledge Leaders Team in Markets

Off the October 3, 2008 low, Priceline.com has outperformed the MSCI All Country World index by roughly 1,100% making it the single best performing stock in the index.  For this reason, PCLN is the leadership stock in the index.

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Advances Continue to Decline January 20, 2015

Posted by Knowledge Leaders Team in Markets

With few exceptions, the 200-day moving average of the daily advance-decline ratio remains close to or below lows not seen since 2008– in direct contrast to the trend in prices for most MSCI sectors.

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Banking And Energy Industry Groups Making New Lows January 20, 2015

Posted by Knowledge Leaders Team in Markets

Across all regions of the developed world, the banking and energy industry groups have been the worst performers.  The MSCI World banking industry is within .5% of making a new 5-year low compared to the MSCI All Country World Index.

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

Posted 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.

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To Hedge or Not To Hedge January 15, 2015

Posted 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.

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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.

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