The US dollar is on the verge of breaking down to the lowest level since 2014. This is not all that surprising. After all, the US money supply continues to grow at a rapid pace relative to other countries and quantitative easing is likely to…
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We believe the US technology sector has reached a level of valuation such that it is has the potential to substantially subtract from portfolio returns going forward. In this mid-quarter update, we: -Highlight how we monitor valuations in the global stock markets while shining a…
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Last week we wrote how interest rates may have room to come down a bit before ultimately heading higher later this year and into next year. This line of thinking was reinforced this week at the Fed’s meeting release and press conference. Powel’s messaging/guidance was…
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10 year Treasury rates peaked at the end of March at 1.74% after having risen from low of just 0.56% back in the summer of 2020. Now, the rate stands at 1.57% even as economic data continues to come in smoking hot and policy remains…
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In this Q1 2021 slide presentation of our quarterly strategy report, we discuss the following topics: -The level of speculative activity in markets this year has been extreme in our view. More money has come into world stock markets in the last 5 months than…
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By reversing an accounting error, we identify Knowledge Leaders across the world. Steve and Bryce give a brief tour of what innovation leadership looks like and where we find investment opportunities in every region and all 11 economic sectors. A New Lens for Looking at…
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Steve and Bryce describe our process for correcting the obstruction created by current accounting standards. We track down innovation investments in company financial statements, reverse the error, and create a new intangible-adjusted financial history that we use to screen for the Knowledge Leaders that form…
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The nature of corporate investing has changed, with a greater than ever focus on intellectual property. In this video, Steve and Bryce describe how an outdated accounting rule renders these investments practically invisible, making it difficult to tell the difference between the Knowledge Leaders who…
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The digital revolution has changed the economics of every industry in every region of the world, creating a growth engine for the last half century and inadvertently, a market anomaly by which highly innovative companies tend to deliver excess returns in the stock market. This…
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It’s no secret that money has poured into passive equity vehicles as investors seek low fees above all else. To date, that has worked out just fine since equity indexes have compounded their returns at acceptable, if not above average, rates of returns. But, the…
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In this Mid-Quarter Update presentation, we share our thoughts on the combination of factors setting up the potential for a major asset allocation rotation into US Treasury bonds. Click to download slides: Is it Time to Revisit US Treasury Bonds? Questions? Email us at investmentteam@klcapital.com. …
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To say the market is bubblelicious is a bit of an understatement given that retail “investment” in call options and penny stocks is quite literally off the charts, dwarfing numbers we saw in 1998-2000. We’ve hit on those worries like a broken record here and…
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In this Q4 2020 slide presentation of our quarterly strategy report, we discuss: Bob Farrell’s Rules for Trading (#5 and #7 especially resonate with us right now). What the retail trading frenzy, recent IPOs and speculation can tell us about where we are in the…
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This week we were privy to both new inflation and initial unemployment claims data. The CPI data revealed a rather mundane inflation scenario. Meanwhile, the weekly initial claims number came in at a whopping 853K and missed estimates by the largest amount since June. Yet,…
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Inflation expectations as priced by the Treasury market are hitting 18 month highs just now. As the reader can see, inflation expectations across all treasury maturities are at cycle highs. This is happening coincident with growing expectations for the $908bn bipartisan stimulus deal and widespread…
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