Archive | June, 2015

S&P 500 Suffers First 2% Down Day Since End of 2014

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Today was no doubt a risk off day for the markets. There was persistent selling pressure in stocks worldwide with the S&P 500 down 2.09%, but international indexes down quite a bit more. Given that today was the first 2% down day since October 9th, 2014 and July 31st, 2014 before that, we thought we’d highlight the utter […]

The Market Continues to Vote for Japan Over Europe

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Despite Japanese stocks outperforming European stocks by 7% YTD and 14% over the last year, the investment community has continued to basically ignore Japan in the commentary we read. But, for those who have been overweight Japan it has been a good ride. The MSCI Japan is up over 9% YTD and 5% over the […]

Are Staples and Health Care Poised for More Outperformance?

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Today’s cyclical jolt aside, it appears from glancing at relative performance charts of growth counter-cyclicals (our code wording for the Consumer Staples and Health Care Sectors) that they could be poised for a relative performance breakout. Indeed, in all major regions of the world, growth counter-cyclicals are outperforming – or look poised for another leg […]

Growth Or Value Leadership Depends on Fed Policy

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The last few years have been good for growth stocks, but I think there is another observation underneath the surface as well.  Growth and value leadership has pivoted on Fed policy the last five years.  In the chart below, I plot the relative performance of the S&P 500 Growth Index compared to the S&P 500 […]

High Level Review of Global Momentum Trends

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In our view one of the most blunt and useful indicators of momentum is measuring the percent of stocks in an index whose 50-day moving average is higher than the 200-day moving average. It sounds simple and it is, but the movement of indicator does a good job identifying the intermediate term trend of the […]