News

US Corporate Profit Margins Are Coming Back Down To Earth May 29, 2015

Posted by Knowledge Leaders Team in News

Today wasn’t the best day for US economic releases. The 2nd revision of 1Q GDP was (unsurprisingly) revised down from 0.2% to -0.7%. The release that caught our eye, however, was the initial release of corporate profits in the US for the first quarter. After-tax…

Read More

Decline in Sentix Euro Break-Up Survey May 27, 2015

Posted by Knowledge Leaders Team in News

The 1,000 or so participants in Sentix’s monthly survey of whether or not a country will leave the euro collectively decided that the risk has subsided (slightly): The decline to 41% (from nearly 50% in April) was mostly attributable to risks related to Greece’s membership…

Read More

San Francisco Real Estate Is 75% Above Housing Crisis Lows May 26, 2015

Posted by Knowledge Leaders Team in News

The latest (March) Case-Shiller Home Price Index was released this morning and there were several noteworthy data points in the report. First, our 3-month diffusion index that measures the number of cities where prices are higher now than they were three months ago increased by…

Read More

The Knowledge Effect Leads to Excess Stock Returns May 08, 2015

Posted by Knowledge Leaders Team in Knowledge Leaders, News

In a new white paper released today, we identify a stock market anomaly. The Knowledge Effect is the tendency of highly innovative companies to deliver excess returns for investors. Academic researchers first discovered an association between a firm’s knowledge capital and its stock performance. Our…

Read More

Revisions Have Improved But Can It Last? April 24, 2015

Posted by Knowledge Leaders Team in Markets, News

The percent of stocks in the MSCI World Index that have had positive EPS revisions compared to six months ago currently stands at 45%. Over the past 7+ years, the average level of this statistic is 56%.

Read More

Potential Trend Change In American Driving Habits April 10, 2015

Posted by Knowledge Leaders Team in News

The second half of 2014 and the first month of 2015 (latest data available) shows a significant increase in total miles driven and total miles driven per capita. Total miles driven on an annual basis has reached an all-time high. The 2.12% year-over-year change is the largest YoY change in nearly 10-years (Feb 2005).

Read More

No Need To Take A Flyer On Canadian Banks April 07, 2015

Posted by Knowledge Leaders Team in News

USD based investors should be wary of Canadian banks.  Canadian banks have taken a beating in 2015 and the near-term trend doesn’t look to be abating anytime soon. The average USD performance of a Canadian bank year-to-date is a ”correction” worthy -13%.

Read More