Index provider MSCI’s decision to include Saudi Arabia in its emerging-markets index will likely transform the Kingdom’s equity market, and potentially those across the Middle East and North Africa (MENA) region, according to Bassel Khatoun and Salah Shamma, Franklin Templeton Emerging Markets Equity.
The economic calendar is modest. Volatility is lower even with plenty of news. The summer doldrums have arrived! It provides time for introspection to fill those empty timeslots and pages.
The Q Ratio is a popular method of estimating the fair value of the stock market developed by Nobel Laureate James Tobin. It's a fairly simple concept, but laborious to calculate. The Q Ratio is the total price of the market divided by the replacement cost of all its companies. This update includes the latest Z.1 data.
This memo covers three ways in which securities markets seem to be moving toward reducing the role of people: (a) index investing and other forms of passive investing, (b) quantitative and algorithmic investing, and © artificial intelligence and machine learning.
The U.S. inflation story made further inroads this month, with year-over-year price growth for consumers and producers alike hitting multiyear highs. U.S. consumer prices expanded at their strongest pace in more than six years, climbing to an annual change of 2.8 percent in May. Prices for final demand goods, meanwhile, grew 3.1 percent, their strongest annual surge since December 2011.
Today's report on Industrial Production for May shows a 0.1% decrease month-over-month, which was worse than the Investing.com consensus of 0.2%. The year-over-year change is 3.46%, down slightly from last month's YoY increase. Revisions were made to the previous five months.
Note: With the release of May Retail Sales and Consumer Price Index, we've updated this commentary to include the latest Real Retail Sales. Month-over-month nominal sales in May increased by 0.8% (0.83% to two decimals). Real Retail Sales, calculated with the seasonally adjusted Consumer Price Index, increased by 0.62%.
We've updated this series to include this week's release of the Consumer Price Index as the deflator and the May monthly update. The latest hypothetical real (inflation-adjusted) annual earnings are at $38,177, down 12.4% from 45-plus years ago.
Risk to the euro resurfaces in an unlikely governing coalition and challenging economic agenda, but Italy’s top stocks don’t face the same perils as its government bonds.
While factor-based, style investing in equities has become popular, its adoption has been much slower in other asset classes, including fixed income. New research shows that style investing can also be applied to bonds.