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Intraday Volatility has Disappeared (Again) November 20, 2014

Posted by Knowledge Leaders Team in Uncategorized

Regular readers know that we have been harping on the lack of volatility all year (few posts here and here) so it should come as no surprise that we are, once again, calling out the absolute evaporation of intraday volatility in US stocks.

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Junk Bonds Not Confirming S&P 500 Record Highs November 20, 2014

Posted by Knowledge Leaders Team in Uncategorized

Since the ”666” intraday low, high yield spreads and equity prices have basically moved in lockstep together. As equity prices moved higher, the spread between junk bonds and 10-year treasuries narrowed. As the chart below illustrates, this relationship started to diverge during the summer.

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Only 28% of Energy Stocks Have Positive Performance YTD November 19, 2014

Posted by Knowledge Leaders Team in Uncategorized

In June, 86% of the energy stocks in the MSCI World Index had positive price performance year-to-date. Since that time, however, energy stocks have been clobbered.  In mid-October, only 11% of energy stocks were higher YTD. This has marginally improved to 28% as of yesterday.

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Stocks are Advancing on Counter Cyclicals, Knowledge Leaders Leadership November 18, 2014

Posted by Knowledge Leaders Team in Uncategorized

As US stocks continue their march higher we’d like to remind readers of the market leadership in general and especially off of the October low. Stocks have staged a powerful rally, but the leadership has been and remains counter cyclical stocks and Knowledge Leaders, companies that successfully employ knowledge capital to achieve outsized returns.

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Beyond the Headline in Germany’s ZEW Survey November 18, 2014

Posted by Knowledge Leaders Team in Uncategorized

Today’s release of the ZEW financial market survey for Germany revealed a surprising increase in economic expectations, compared to the consensus for a marginal improvement: chart note:  dark blue = balance red = improve light blue = no change black = worsen Meanwhile, the question on current economic conditions revealed no change from low levels

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Momentum Continues To Diverge From Price Action November 17, 2014

Posted by Knowledge Leaders Team in Uncategorized

As we have noted many times before, a simple way of measuring momentum is by looking at the percentage of companies that have a 50-day moving average above its 200-day moving average. Robust bull moves tend to have a rising percentage of stocks where the 50-day moving average is higher than the 200-day moving average.

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The Emerging Market Dividend November 17, 2014

Posted by Knowledge Leaders Team in Uncategorized

As we saw last week, the single most important factor in the performance of constituents in the MSCI Emerging Market Index over the last year has been dividend yield: The median dividend yield for EM companies is about 2%, with EM EMEA on the high end (2.75%) and EM Asia on the lower end (1.78%):

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The Best And The Rest November 14, 2014

Posted by Knowledge Leaders Team in Uncategorized

There are only a few stock markets in the developed world that are extending to new one year highs, while there are many that are well below one year highs.  Looked at in USD, the US, Sweden, Switzerland and Japan are at one year highs.

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A Brief Review of Our Factor Scores November 13, 2014

Posted by Knowledge Leaders Team in Uncategorized

What is the most important factor driving performance over the last quarter?  That depends on which region you look at.  While there is some commonality, we find it useful to compare various regions/ indices.

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MSCI Europe Just Can’t Keep Up November 12, 2014

Posted by Knowledge Leaders Team in Uncategorized

A little over half of the constituents in the MSCI World Index are within 10% of their 200-day highs, rebounding from the mid-October low of just 22%: We see similar trends in the North American and Pacific regions, with 71% and 47% of their members, respectively, back to within 10% of 200-day highs: Investors in

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Despite New Highs, More Stocks Are Gapping Down on the Open of Trading November 12, 2014

Posted by Knowledge Leaders Team in Uncategorized

While (some) equity markets have gone a long way to erase the October decline or even eclipse the old highs, the number of stocks that are gapping lower on the open of trading is increasing. Why is measuring the number of gapping stocks important? It is a simple way of gauging investor emotional selling behavior.

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