Archive | February, 2016

Sales and Earnings Growth Estimates Jump, Led by Japan


The three-month change in the median sales and earnings growth estimates for developed world companies have jumped significantly over the last couple of weeks: Regionally, growth estimates for the average company in DM Americas has actually fallen, while those for DM EMEA are not all that impressive: Growth in sales and earnings estimates for companies […]

US Industrial Production Starts 2016 On The Right Foot

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Industrial production in January increased by a very unexpected 0.9% in January. This was well above expectations as analysts were expecting a 0.4% MoM increase according to Bloomberg. Industrial production was helped by a 2.8% increase in vehicle production. So while the overall year-over-year change in industrial production is still negative at -0.7%, the manufacturing portion of […]

Is China To Blame For Falling Inflation Expectations?

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10-year TIPS implied breakeven inflation made nearly a a seven year low last week as it fell to just 118 basis points. This was the lowest level since March 17th, 2009 aka eight days after the infamous intraday “devil’s” low of 666 on the S&P 500. Deflation was unquestionably the main fear in the market in […]

EM has Out-performed DM in the Short-term (a good sign), but is this Just a Reflection of a Weaker USD?


Over the weekend a long-time client asked an excellent question related to our recent blog post entitled, “Is a Bright Spot Emerging in the Global Equity Markets?”, in which we tediously documented the relative out-performance trends among the vast majority of emerging market countries. The client correctly highlighted another notable divergence from trend being the US […]

Be A Proactive Investor

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During volatile times in the market, like what we have been experiencing since May, it’s difficult to see through the disparaging news headlines (Oil is Collapsing! Bear Market in Stocks! US Is In A Recession!) and not to lose sight of the forest for the trees. Investing is a long-term game with seemingly unlimited number of opportunities and it’s […]

Quality is Ruling Pretty Much All Areas of this Market


As markets narrow amid stress in the commodities and banking areas (see our recent post on the narrowness of markets) we wanted to point out that there has been one saving grace for equity investors, which is quality companies. In all but two sectors (energy and materials), owning the highest quality companies has significantly helped performance. […]