Archive | June, 2015

How Innovative Is Your State?


We were recently asked an interesting question regarding US Knowledge Leaders: is there a greater concentration of knowledge intensive companies in a certain region or state? When one thinks about innovation in the United States, one quickly thinks of Silicon Valley. However, our Knowledge Leaders are large corporations and are not startups.  Do we still find a greater […]

Visual Representation Of The Slow Death Of Coal In The US


From 1989 through 2008, the one-year moving average of total railroad traffic carloads in the US vacillated between about 320,000 units (in 1993) and 350,000 units (in 1999). Since the Great Recession, however, total railroad carloads have fallen by about 15% and have stayed at new lower level.  Earlier this year, there seemed to be […]

How We Separate the Leaders From the Followers


In our process for determining which companies in our universe qualify as Knowledge Leaders, we focus on seven metrics in three important categories.  It is important to note that, for each of these variables, we use our intangible-adjusted data.  First, we look at Knowledge Intensity.  We ask: how much does a company spend on intellectual […]

Are Staples and Health Care Poised for More Outperformance?

picture 1

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 […]

The Weak Trend In EM currencies and Commodities Isn’t Abating


There tends to be a fairly strong link between commodity prices and emerging market currencies. When commodity prices are stronger on the margin, emerging market currencies tend to rally against the dollar. And of course then, when commodity prices are weaker, as they have been over the past year, emerging market currencies tend to depreciate […]

Volatility, in Pictures

Earlier this week, we highlighted exactly how rough a year it has been for Greek equities so far (in sharp contrast to stocks’ performance in Russia, of all places).  As regular readers are aware, we employ a relative strength point-and-figure technical analysis program in order to get a better picture of the signal in individual […]

Growth Or Value Leadership Depends on Fed Policy

SV 6.19.15

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 […]