Blog

Review of the Mathematical Distortions of Market Cap Weighted Indexes February 17, 2015

By Knowledge Leaders Team in Portfolio Management

Earlier today we had a client ask us to verify a statistic they came across showing that the few largest companies in the world were responsible for the vast majority of the total return of the stock market over the last year.

Fed PMIs Were Almost Universally Weaker In January February 17, 2015

By Knowledge Leaders Team in Economy

We had our first look at manufacturing conditions in February (NY Fed Empire Survey came in below consensus by a few points) and tomorrow we have the industrial production report for the US. What should we expect when that report comes out?

Is That Leveraged ETF Worth It? Comparing SSO and VOO February 17, 2015

By Knowledge Leaders Team in Portfolio Management

As ETFs control a larger number of assets under management, it is no surprise that the options available to investors are getting ever more exotic. One of the early examples (and thus we actually have history available) of exotic ETFs are leveraged ETFs.

Is Energy’s Dead Cat Bounce Over? February 12, 2015

By Knowledge Leaders Team in Markets

On an equal-weighted basis, the energy sector has still been the best performing sector in February. It is nearly 7% higher this month, however, it has been the worst performing sector so far this week (-1.5%).

Positive Economic Surprises in Europe, Negative in the U.S. February 11, 2015

By Knowledge Leaders Team in Economy

The Citi Economic Surprise index is a quick way to get a high-level look at the condition of economic data around the world.

Copper Price Rolling Back Over February 10, 2015

By Knowledge Leaders Team in News

The price of the all important copper appears to be heading lower once again after what in retrospect looks like a dead cat bounce.

Inflation and Why China Needs it but Doesn’t Have Any February 10, 2015

By Knowledge Leaders Team in Markets

The latest Chinese CPI and PPI readings were released today and showed the lowest year-over-year change in CPI since 2009 and yet another negative PPI reading (chart 1).

Stocks Selling at a Discount to Book Value is a Thing of the Past February 10, 2015

By Knowledge Leaders Team in Markets

We suspect pegging short-term interest rates at zero for years has something to do with the fact that, for as far back as we have data, there have never been fewer stocks selling at a discount to book value. Importantly, this is a global phenomenon.

Scoring Our Point-and-Figure Charts February 10, 2015

By Knowledge Leaders Team in Portfolio Management

Last week, we went into all of the details of our proprietary point-and-figure methodology (see here).

Are EM Asia Equities Really That Cheap? February 09, 2015

By Knowledge Leaders Team in Markets

Several financial market commentators have recently been making the case for EM Asian stocks based on their valuation level. One of the commonly used charts is the first one below, which shows the forward 12-months price to cash flow valuation for EM Asia relative to North America.

Disclosures

The information presented here is for informational purposes only and is not to be construed as an offer to sell, or the solicitation of an offer to buy, securities. Some investments are not suitable for all investors, and there can be no assurance that any investment strategy will be successful. Hyperlinks may be included in this message that provide direct access to other internet resources, including web sites. While we believe these links are to reliable sources, Knowledge Leaders Capital (“KLC”) has no control over the accuracy or content of information contained on these sites. Although we make every effort to ensure such links are accurate, up to date and relevant, we have no control over pages maintained by external providers. The views expressed by these external providers on their own web pages or on external sites they link to are not necessarily those of Knowledge Leaders Capital.

The information provided on this blog is for illustrative or example purposes only and should not be construed as KLC’s opinion or investment outlook. As of the most recent quarter end, the named companies may have been held by KLC. For full information including additional policies and full disclosures, please visit our website: KnowledgeLeadersCapital.com.

Any reference to Index performance does not represent the performance of any investment product offered by Knowledge Leaders Capital, LLC. An investor cannot invest directly in an index. The performance of client account may vary from the Index performance. Index returns shown are not reflective of actual investor performance nor do they reflect fees and expenses applicable to investing.

Companies are selected for “Spotlights” based on high levels of innovation activities in their respective industries and illustrate innovation being employed across all sectors and geographies. Spotlight selection is separate from stock selection by the investment team. Spotlights are not necessarily representative of investment opportunities and can be selected regardless of investment performance or inclusion as a KLC holding.