Emerging Market Intangibles


Considering our focus on investing in the most intangible-rich companies in the world, it is no surprise that we follow investments in intellectual property very closely.  Unsurprisingly, corporations in developed countries invest more in R&D, advertising, and firm-specific resources than their emerging market counterparts.

Stock Valuations Jumped Again in December


By almost any measure stocks are pricey relative to history. We’ll save the theoretical debate about whether such high valuations are justified for another post, and will instead illustrate with charts just how far valuations have come over the last five years. The Shiller P/E just made a new cycle high in December of 27.1x.

Down Gaps On the Rise


As one measure of market volatility, we calculate the cumulative number of stocks in the MSCI World Index that open at least 2% higher (or lower) than the previous close over a 65-day time period.  Extremes in the number of gaps often occur in conjunction with inflection points in the market.