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Wages Are Rising and The Phillips Curve is Not Dead

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The Phillips Curve (the relationship between wages and the unemployment rate) finally awoke from its slumber with today’s unemployment report showing private sector wages rising 2.9% year-over-year and non-supervisory wages rising 2.8% year-over-year, the fastest growth rate since 2009. Even more important than that, though, is that all indications continue to point to even faster […]

A New Super Factor: the Investment Case for Knowledge

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We’re pleased to share a new white paper on the market anomaly that rose above value, size, quality, low volatility and momentum factors. Written by Bryce Coward, CFA, the study details the results of first market test of the Knowledge Effect, the tendency of highly innovative companies to deliver excess returns. Download the white paper here: A New Super Factor: The […]

If This Market is Anything, it’s Narrow

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On a day like yesterday when more than half of the US tech sector was down more than 2%, we are reminded of the benefits of diversification. Yet, diversification would not have helped one participate in the market’s rise to the highest level since February. Indeed, this latest gasp higher in the broad indexes has […]

The Inflation Story is Alive and Well in Five Charts

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In light of Fed Chairman Powell’s congressional testimony, we thought it relevant to revisit the inflation story and provide yet more evidence that the trend in inflation continues to be higher. For now, the Fed has assessed the risks to inflation and growth as balanced in both directions, which is Fed-speak for a policy that […]

Fed Tightening Doesn’t Fully Explain EM Financial Market Weakness

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This week financial market participants were delivered a cogent explanation for the weakness in EM stocks, bonds and currencies by India’s central bank governor, Mr. Urjit Patel. In Mr. Patel’s opinion, the US Federal Reserve’s tightening of monetary policy (most specifically balance sheet shrinkage, or the allowance by the Fed to let maturing bonds roll […]

Sitting Here in Limbo

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In observing the equity markets over the last several weeks, we cannot help but be reminded of the Jimmy Cliff song, “Sitting Here in Limbo”, which was famously covered by Jerry Garcia. The first two lines go like this: “Sitting here in limbo, like a bird without a song Sitting here in limbo, but I […]