Lower Quality Stocks Have Led the Market Over the Past 3 Months

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‘Quality’ is one of the those terms in finance that if you ask three different investors to define you get four different answers. Generally, however, companies with higher profitability, lower debt, and higher sales growth are considered to be higher quality companies. Lower quality companies tend to have the opposite characteristics. Over the past three […]

DM Estimates Revisions Breadth Has Hit an All-Time Low


More than three out of four developed market stocks have seen a negative revision to their FY1 sales estimate over the last six months. Earnings estimates have fared slightly better, with about one-third of the developed world experiencing positive revisions. The energy sector stands out, having the greatest percentage of issues with positive revisions to estimates, […]

DM EMEA Equities: Leadership Wanted


Preliminary data from Markit’s Purchasing Managers’ Index (PMI) survey, released today, convey an overall positive picture for the Eurozone as a whole. The composite index rose (unexpectedly) to 54.1 from 53.3 in October. Eurozone PMI Manufacturing also rose unexpectedly (to 53.7 from 53.5, avoiding the anticipated decline to 53.3), in spite of small declines in […]

Quarterly Strategy Update: A Rotation to Cyclical Leadership?

This quarter we discuss our work navigating a global equity rotation from defensive-driven leadership to cyclical-driven leadership. We analyze economic growth trends and our belief that we are in the closest thing to a synchronized global upturn that we’ve seen in years. We discuss three liquidity shocks are impacting asset prices: China devaluing the yuan, divergent monetary […]

Where Do Equity Valuations Stand Today?


There seems to be several compelling reasons at the moment to mine developed market Asia for new equity investment ideas. Earlier this week we noted that the changing liquidity environment could move investors’ regional equity preference from North America to Asia. In this post we are evaluating current equity valuations and the most obvious conclusion to draw is that […]