Archive | March, 2016

Pharma’s cousin, biotech, is showing some major topping signs

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Yesterday, Jennifer asked is Valeant Pharmaceuticals the proverbial canary in the coal mine for the pharma industry? She came to the conclusion that the outlook for pharmaceutical stocks is certainly not as optimistic as it was six months ago. If the pharma’s outlook is less optimistic than biotech’s outlook is downright pessimistic. You may be asking […]

Knowledge Leaders Don’t Need Your Bank Loans, Thank You Very Much.


When we read this Bloomberg article about concerns regarding the ECB’s announcement of an expansion in its Targeted Longer-Term Refinancing Operations (TLTROs)– and the assumption that European banks will simply use them to “paper over the cracks in the finance industry’s balance sheets without funneling extra money into the real economy”– we couldn’t help thinking […]

Copper Failing at the 200-Day?


After the nearly 20% bounce that has taken place since the January lows, copper may now be running into intermediate-term resistance that could keep the rally capped for now. That resistance is the 200-day moving average, which has kept a lid on all the rallies over the last few years and acted as fuel to […]

Estimates Are Still Falling In The US

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Earning and sales estimates for US companies have yet to to turn the corner. Estimates continue to fall with most of the damage being done in the energy and material sectors. However, if the past month is any indication estimates may soon begin to rise. Over the past six months, the median US company has seen its […]

On The Statistical Significance of the Knowledge Factor


Review: Over the last week or so we’ve been highlighting how factor investing is not as cut and dry as advertised. The traditional simple factors (value, size, momentum, quality, low volatility) sometimes work and sometimes don’t so investors are left to make educated guesses about which factors will work in any given year. Here we’re […]

What Goes UP in EMEA as ECB Assets Rise?


Ahead of tomorrow’s monetary policy meeting at the ECB, a majority of respondents expect both a cut in interest rates and an increase in the amount of monthly purchases in the Public Sector Purchase Program (PSPP) that began about a year ago. Speculation that markets may be disappointed should not come as a surprise, however. […]