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Putting the Snap IPO into Historical Context

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The Snap IPO has garnered a fair amount of coverage over the last two days so we thought we’d put some data behind the phenomenon. The most striking thing about the Snap IPO is clearly the valuation. Snap doesn’t have any earnings, but it does have a modicum of sales. After two days of trading […]

Counter-Cyclical Underperformance is Overdone Says Copper, CNY and Rates

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Counter-cyclical stocks have underperformed cyclical stocks by about 9% since Brexit lows. That recent bout of underperformance has been enough to spur many to proclaim that the world is on the cusp of faster growth and the reach for yield play has seen its end. A review of our charts, however, suggests this period of counter-cyclical underperformance/cyclical outperformance may […]

China Slowdown Story has Moved into a New Phase as Government Props up Ailing Private Sector

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The last several days saw the release of the usual slue of monthly and quarterly economic stats out of China, which were mostly met with applause from the financial punditry as headline numbers beat expectations.  A look under the hood, however, reveals quite a different story. The composition of growth in China again markedly deteriorated in […]