Commentary

Why Has the Chinese Yuan Been So Strong, Will it Last, and What Does it Mean for the US?

Since May 2020, the Chinese Yuan has defied the path of other emerging market currencies, strengthening by almost 12%.

Commentary

Spotlight Sysmex: On the Bleeding Edge of Health Care Diagnostics

Headquartered in Japan, Sysmex is the No. 1 provider of blood diagnostics equipment in the world.

Commentary

Spotlight Kurita: Water as Breakthrough Technology

Based in Tokyo, Japan, Kurita Water is a global leader in water management and water treatment chemicals.

Commentary

Powell Successfully Walks the Tightrope

We highlight a few takeaways from Fed Chair Jerome Powell’s confirmation hearing today before the Senate Banking Committee, broken down by topic.

Commentary

Forward Thinking: 2022

This quarter’s strategy report, Forward Thinking 2022.

Commentary

Is the Market Looking Through the Current Inflation?

This Friday we’ll see where the US CPI comes out. We recently got the November print for the Eurozone CPI, and it came in hot, hitting 4.9% year over year.

Commentary

Spotlight Tokyo Electron: Shifting Left

Since its founding in 1963, Tokyo Electron has been accumulating the technological expertise it builds on to deliver industry-leading production equipment in two product categories: semiconductors and flat panel displays.

Commentary

Spotlight Tokyo Electron: Shifting Left

Since its founding in 1963, Tokyo Electron has been accumulating the technological expertise it builds on to deliver industry-leading production equipment in two product categories: semiconductors and flat panel displays.

Commentary

Have Option Players Taken the Week Off?

For years preceding the COVID-19 pandemic, call option volume averaged about 15% of daily NYSE volume. This was a normal level of speculation that investors were used to.

Commentary

International Stocks Could be Ripe for a Catch-Up Trade

A definite feature of the last decade has been the persistent underperformance of European and Asian stocks vs US stocks. Foreign stocks have underperformed with such consistency that it’s almost expected at this point.

Commentary

Does the Fed Having a Brewing Velocity Problem?

A prominent feature of the post-Great Financial Crisis period has been the persistent decline in velocity, which is why the Fed has had to pump so much money into the system for so long. Absent an increase in the money supply, the drop in the velocity, all else equal, would have likely been the backdrop for a long recession.

Commentary

Here’s One (More) Reason Inflation Could Accelerate Through Mid-2022

It’s no secret that pandemic-related government policy is driving at least some of the inflation currently being experienced in the United States. Indeed, real disposable income per capita has deviated from a linear trend in a meaningful way since 2020.

Commentary

Here’s Why the Fed Could Stay Easy for a LOOONG Time

This week Jerome Powell tossed the market a bone by hinting that the Fed would be patient in raising short-term interest rates due to the continued slack in the US labor market and inflation that would likely be “transitory”.

Commentary

Seasonal Tailwinds

We find compelling evidence that seasonal factors exist, historically leading November and December to be the highest 2-month combined returns all year. In our allocation portfolios, we have increased our equity exposure significantly in an effort to capitalize on these year-end trends.

Commentary

The Epitome of Financial Repression in 2 Charts

By now investors are quite aware of the consequences of financial repression via negative real interest rate policies. Since interest rates on “risk free” government debt are too low to even compensate for inflation, it pushes investors out the risk spectrum in an effort to achieve a positive rate of return after inflation.