Investors love to toss around fundamental data points that are pretty meaningless without context.
Brazil’s trade data in October was abysmal. Exports fell 10.2% year-over-year to $13.721 billion and imports fell 15% year-over-year to $11.375 billion.
Regular readers are aware of our research showing that the Knowledge Effect is really a “super factor”.
October was a pretty good month, all things considered, for economic data out of Europe. Industrial production out of Germany, Italy, France and for the Euro-Area aggregate all surprised to the upside.
Neither the bulls nor the bears are winning the equity market battle right now. When markets have strong momentum, either positive or negative, than you tend to see big spikes in 20-days highs (when positive) and lows (when negative). Currently, we see neither.
Since the summer of 2015 the long gold, long 10-year US treasury trade bonds has basically been one in the same (silver and treasury bonds have moved in tandem as well).
A primary concern of central bankers is that in a deflationary environment consumers change their expectations regrading the future level of prices.
This quarter we discuss our work navigating a global equity rotation from defensive-driven leadership to cyclical-driven leadership.
High yield investors have had a much different experience in 2016 than they did in 2015 (fortunately for them). The high yield spread over 10-year treasury yield blew out from 375 bps in June 2015 to 844 bps in February 2016.
There seems to be several compelling reasons at the moment to mine developed market Asia for new equity investment ideas.