Oil Has Rebounded but Energy Equities Have Lagged. Is It over Already?
Energy equities have underperformed the S&P 500 materially over the last five years. While spot oil prices have risen significantly over the last twelve months, longer dated oil prices have not, and energy equities have remained under pressure.
Can Small-Cap Outperformance Continue?
Small caps have materially outperformed large caps in 2018, with the S&P SmallCap 600 Index outpacing the S&P 500 Index 7.80% to 2.58% between Dec. 29, 2017, and May 25, 2018. Below, I highlight the drivers of small-cap returns this year, and why I believe the trend could continue.
S&P 500 Snapshot: Down 0.1% from Yesterday, Mostly Unchanged from Last Week
The S&P 500 spent the majority of the week seesawing until Friday when it opened lower than Thursday and dropped midday. The index was down 0.11% from Thursday and is up a measly basis point from last Friday. The index is up 3.10% YTD and is 3.25% below its record close.
Evolutions in Growth, Trade and Geopolitics
PIMCO’s Global Advisory Board discusses the outlook for major economies and geopolitical developments.
ECRI Weekly Leading Index Update
This morning's release of the publicly available data from ECRI puts its Weekly Leading Index (WLI) at 149.3, up 0.08 from the previous week. Year-over-year the four-week moving average of the indicator is now at 3.40%, up from 3.22% last week. The WLI Growth indicator is now at 2.7, up from the previous week.
New Chapter for Korea Peninsula After U.S.-North Korea Summit
Matthews Asia Portfolio Manager Michael Oh says South Korea’s economy may benefit from closer ties to North Korea, but costs and risks remain.
What “Value” Does Investing Create?
The financial industry can measure up by conveying capital to improve the future of humankind; in short, by creating value.
A Tale of Two Koreas
The team illustrates the economic background behind the Korean summit meeting and profiles corporate debt.
Texas Gold Investors Just Got Their Own Fort Knox
If you live in Texas and have any extra gold bars, coins and/or jewelry lying around that need safekeeping, you’re in luck. The Texas Bullion Depository, the first of its kind in the U.S., officially opened to the public in Austin this week, putting a cap on three years of planning and construction. The private firm managing the facility, Lone Star Tangible Assets, calls it the “world’s most advanced depository.”
China’s Property Market: Bubble or Balloon?
Despite long-running international concerns about China’s property “bubble,” the market has proven quite resilient. The Chinese government has instituted various austerity measures to cool the market, but buoyant demand for property has helped avoid any serious downturn.
Semiconductor Leadership Highlights the Rotation Into Value Stocks
Semiconductor and semiconductor capital equipment stocks have been stellar performers lately, a trend we have been a bit slow to recognize. So, I decided to do a deep dive on semis and semiconductor capital equipment stocks to see if there is opportunity left to capture.
Are Emerging Markets the Canary in the Financial Coal Mine?
Economists who assure us that advanced-economy debt is completely “safe” sound eerily like those who touted the “Great Moderation” – the supposedly permanent reduction in cyclical volatility – a generation ago. In many cases, they are the same people.
Weighing the Week Ahead: Is it Time to Worry About a Trade War?
The economic calendar is light. Most of the “financial” news flow relates to non-core stories. Of the various geo-political themes, there is one that is most significant for investors.