It wouldn’t be Halloween without a few scary sights. Here, we share some of the most frightening point-and-figure charts we are seeing in MSCI Europe right now. Though the heavy representation by cyclical (or Russian Telecom) companies may not surprise many investors, the presence of names from some of the more defensive sectors might.
Over the last month, ROE has moved to the top of the list of factors that influence returns in the MSCI World Index: While this was also the most important driver in Europe, it did not even make it into the top five for the North American or Pacific regions: Europe North America Pacific
As we have mentioned before, each month we score companies’ technical strength relative to the benchmark. Since a year ago, the average score for European and, to a lesser extent, North American companies has declined.
Two of the blunt technical tools that we look at are the percent of stocks trading above its 200-day moving average and the percent of stocks with its 50-day moving average trading above its 200-day moving average.
NYSE Margin debt rose a miniscule (relatively speaking) $800 million in September. It currently still sits just below the all-time high set back in February. The three month change of -$433 million is the smallest absolute change since the three month period ending in August 2010.
It’s tough to find a great deal of optimism in or about European equities these days.
In my favorite scene of White Men Can’t Jump, Woody Harrlson’s character stops the basketball game and confronts his teammate (played by Wesley Snipes) about his poor play, saying, ”What, you still throwing up bricks? What is this, a Masons convention? Wha…clank, clank! I need, like a welding torch to play in this league!
Looking out of our office and seeing signs of construction activity across Denver, it can be hard to imagine that 20% of the cities in the S&P Case-Shiller Home Price Index are still at least 30% off its all-time high.